Japan - Vietnam: 40 Years of Coal Industry Development Cooperation

3:25:28 PM | 10/2/2013

Vietnam and Japan have many successful cooperation projects in various fields, including the coal industry. To reach the current growth in the Vietnamese coal industry, Japan’s scientific and technological support have made important and comprehensive progress. And, the significant contribution of scientific, technological and training cooperation between the governments of Vietnam and Japan has played an important role. The highlight is the “Training cooperation project for coal production capacity improvement” funded by the Japanese Ministry of Economy, Trade and Industry (METI) and implemented by the Department of the New Energy and Industrial Technology Development Organization (NEDO), the Japan Coal Energy Centre (JCOAL), the Japan Oil, Gas and Metals National Corporation (JOGMEC) and the Kushiro Coal Mine Company (KCM) in cooperation with the Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin).
 
The project aims to enhance production capacity and safety management for coal mines by sending selected Vietnamese specialists to Japan for training while the Japanese side also sends its experts to Vietnam to survey coal mines and provide onsite training for Vietnamese workers and technicians.
 
Through its NEDO, the Japanese Government funded a project to survey, appraise and explore coal in the Red River Delta, Khe Cham, Dong Trieu - Quang Ninh, and Dong Ri - Bac Giang. The project aimed to survey and find more coal for Vietnam. Besides, the two sides also collaborated on a research project to plant trees in dump-sites in mining sites around Ha Long area, Quang Ninh province, improve soil by using ash from thermal power plants, plant trees on landfill sites, and transfer technology and research knowledge.
 
Vinacomin has exported coal to Japan for over 20 years. It exports anthracite coal to Japan’s steel, cement, electricity and chemical industries. Major importers of Vinacomin’s coal include Nippon Steel - Sumitomo Methane, JFE Taiheiyo, Sumitomo Osaka Cement and NDK through large trading companies like Marubeni, Sumitomo Corp and Nippon Steel Trading. Apart from exporting high-quality coal to Japan, Vinacomin is also stepping up cooperation with Japanese trading companies to seek coal sources for import after 2016 to supply thermal power projects in Vietnam. Besides, Vinacomin and Marubeni have cooperated in alumina sale at Vinacomin’s Lam Dong bauxite - alumina complex.
 
Vinacomin has formed close and broad partnerships with leading Japanese banks and credit institutions such as Sumitomo Mitsui Corporate Bank, Mizuho, BTMU, JBIC and NEXI to arrange funds for its development investment projects. Specially, JBIC and SMBC arranged a US$100 million loan for a coal mine development project and a US$200 million credit for Dong Nai 5 hydropower plant of Vinacomin. The group also signed a US$300 million credit agreement with Citibank Japan for its Lam Dong bauxite - alumina complex project, which is insured by NEXI.
 
In the construction industry, the general contractor consortium of Marubeni Corp and Lilama Corporation built and installed 110-MW Na Duong thermal power plant invested by Vinacomin in Loc Binh district, Lang Son province. This thermoelectric plant - the first thermal power plants to use modern CFB technology - successfully started commercial operations from November 2005 as an effective cooperation between Marubeni and Vinacomin.
 
In the coming time, Vinacomin and its Japanese partners will continue to give priority to cooperation in training, coal mining technology transfer, coal exploration investment and selection of appropriate technologies for coal mining in the Red River Delta - a huge coal reserve; and continue to perform environmental improvement and mine recovery projects to ensure the group’s sustainable development objectives. Additionally, Vinacomin and Kobe Steel Corporation of Japan will actively cooperate in Thach Khe iron mine development in Ha Tinh province. Specifically, the two sides will conduct research on building the complex, including Thach Khe iron ore exploitation and processing project and iron particle production factory project. Last but not least, the two sides will also promote cooperation in the development of the rare earth industry in Vietnam.
 
While ensuring sufficient coal supply for the Vietnamese economy, Vinacomin will continue to give priority to stable coal supply for Japanese customers. Japanese banks and credit institutions like JBIC, Sumitomo Mitsui Corporation and Mizuho are ready and willing to cooperate with Vinacomin to arrange funds for its development projects.
 
Minh Nghia - Huong Giang