Coal Industry: Making Efforts, Resolving Difficulties

According to Vinacomin's report at a monthly meeting to deploy tasks in December 2014, the Group has been completed all the targets in 11 months including: 33.9 million tonnes of raw coal; 31.9 million tonnes of coal consumption.

 

Vinacomin’s reports also showed that the Group turnover of 11 months was approximately VND96,400 trillion, including all of its subsidiaries, accounting for 96.1 percent of the year's plans. Remarkably, the Group ensured jobs for 128,000 workers at average income of VND8.2 million per person per month.

 

Moreover, the Group faced difficulties in financial balance with due taxes and fees on resource extraction costs continuing to rise in 2014. Despite many challenges in production activities, the group aims to complete all the targets this year, including of production 37.7 million tonnes of coal, consumption of 35,5 million tonnes of coal, total revenue of whole year will reach VND106,800 billion, an increase of VND1,300 billion compared to the same period last year.

 

The Group will keep making efforts, resolving difficulties to complete its set targets, said Mr Dang Thanh Hai, Vinacomin's President & CEO. Specially, the Group will focus on booting coal production and consumption. Mr Hai also noticed member units to accelerate the key mining projects such as Ha Lam, Nui Beo and Khe Cham II-IV pit mining, and coordinate closely with the local authorities on managing mine boundaries, preventing the illegal coal exploitation, processing and consumption in the areas...

 

In 2015, Vinacomin sets targets of production 41 million tonnes of coal, 38 million tonnes of coal consumption.

Vinacomin has signed 10 memorandums of understanding (MoU) with foreign companies for an annual supply of about 20 million tonnes of coal. The companies with whom the MoUs have been signed are from Indonesia, Australia and Japan.

 

The Vietnam Oil and Gas Group also signed contracts with Australian firm Ensham Coal Sales and Peabody, Indonesian firm Tuah Turangga Agung and Japanese firm Sojitz Corporation, besides an MoU with Indonesian firm Noble Group, for the supply of a total 10 million tonnes of coal a year to meet the demand of its thermal power plants.

 

According to the National Power Master Plan VII for the period 2011-20 with a vision to 2030, thermal power will comprise a large portion of the country's power supply. Therefore, the demand for coal in power production will be high, while the domestic coal supply is not sufficient.

 

The Ministry of Industry and Trade (MoIT) forecast that Vietnam will have to import an estimated 3 million tonnes to 4 million tonnes of coal in 2016, 35 million tonnes in 2020 and 80 million tonnes in 2025, as well as 135 million tonnes in 2030, for producing electricity.

 

However, a large quantity of imported coal will be difficult to get because of unstable supply.

 

Vietnam can import coal from four countries, namely Indonesia, Australia and Russia, besides South Africa. In August, 41,500 tonnes of Russian coal arrived at Hon Net Port in the north-eastern Quang Ninh province.