Success Story of Quang Hanh Coal

Officially beginning operation in May 2003, formerly Geology and Mineral Company, Quang Hanh Coal Company initially had to face many difficulties with weak technical facilities and inexperienced workers. Well aware of such weaknesses, the company’s Management Board quickly built up reasonable plans to promote their advantages, bravely applied modern technology into production, expanded and increased mining productivity, and trained human resources. With positive policies, the company has gradually operated stably. In 2006, the company produced over 1 million tonnes coal (on par with companies of over 30 years experience). The employees’ lives got better and better. Quang Hanh Coal’s reputation has been asserted strongly in the industry and in the locality.

 

From 2008 to 2011, increasing inflation and high interest rates directly influenced production and business of enterprises, made it impossible to sell coal. On one hand, the company got support from Vinacomin Group. On the other, it was active in business and production, cost management, which resulted in the company’s ensuring big balances, overcoming crisis and maintaining stable production and growth. It applied salary payment mechanisms based on productivity and quality, and built expansion indicators for title and professions. Given its reputation and brand, Quang Hang Coal found reputable bank partners to serve production.

 

After 8 years trading, overcoming challenges, the company has gained remarkable achievements. In 2003, there were only 1,800 employees, total amount of crude coal of 242,391 tonnes per year, total turnover of VND 97 billion and 384 million, bringing monthly income per capita of VND 1.5 million. In 2011, the numbers increased to over 3,600 employees, approximately 1,200 tonnes per year of crude coal per year. Since 2009, the turnover has been from VND 1,100 to 1,300 billion per year, the profit has reached over VND 20 billion, and average income reached VND 7.5 million.

 

Working conditions have continuously been improved. The company invested into modern technology and equipment for production such as: mechanized oven by 100 percent of mobile hydraulic frame, single hydraulic pits with joint beam, circle transportation system from oven mirror at level -175, -110, -50 etc to central sieving house for manufacturing. Oven excavating technology has been improved with modern equipment such as Combai oven excavator, tamrok driller, excavator, stone raking machine etc. At present, the company is making investment at level -175 at Nga Hai Coal mine to increase mining productivity to 1.5 million tonnes per year and extend the mine’s life for 40 years, and will continue to make investment at level -350 to produce after finishing at level -175. Thus, the life of Quang Hanh mine is from 70 to 80 years, while many coal mines are running out of production capacity.

 

In addition to investment into production, the Company has paid attention to working conditions for employees such as: sport stadium, workers’ dormitory, circle complex for shower-wash-dry, bonsai garden, mine roads being paved with concrete from Highway 18 into the mine and continue to Road 86. At the end of 2010, the company initiated construction of a multi-floor dormitory at km9 of Quang Hanh Ward to provide worker accommodation. It is expected that all workers will move to new dormitory by 2013.

 

The company has always cared about workers’ life and introduced policies to encourage individual development. The company made in-depth investment and provided training programmes for high qualified technical staff, including new graduates in real production, gave them a different working, living and remuneration mechanism so they can sharpen their ability and be devoted to the company in coming years. Moreover, the company also associated with Vinacomin Hong Cam mining vocational school to sign contracts for labourers training for tunnel and mine exploitation. The training cost was all paid by the company at rate of over VND 40 million per trainee. At the same time, the company regularly teaches staff about the tradition of miners and the working class to raise their awareness about their work, responsibility and contribution to the company. The success of Quang Hanh Coal for the past 9 years reflects its sustainable development in the integration period.