Coal Industry Needs US$4.5Bln Investment Capital by 2025

Vietnam’s coal industry will need nearly US$4.5 billion of investment capital to reach its goals for 2006-2025, according the sustainable development strategy for the industry in 2006-2015, and vision to 2025, a report from Vinacomin’s website said.

 

The sum will be raised from foreign and domestic sources via equitization, joint ventures, loans, bond issuance and calling for foreign direct investment (FDI).

 

Of the total investment, the 2006-2010 period will require some US$1.82 billion, 2011-2015 US$1.32 billion and 2016-2025 US$2.82 billion.

 

Under the strategy, the industry will complete exploration and evaluate coal reserves to a depth of 300m in Quang Ninh coal basin by 2010, and between 2015 and 2020 will conduct a survey at the Hong (Red) River coal basin.

 

Up to 66.7 per cent of Vietnam’s coal reserves are found in northern Quang Ninh province, of which anthracite coal makes up 68.5 per cent.

 

At Quang Ninh coal basin, the industry will raise annual crude coal output to 48-52 million tons in 2010, 65-70 million tons in 2020 and 75-80 million tons in 2025, from the current 40 million tons.

 

Vietnam will end coal exports by 2015, focusing on domestic consumption which is forecast to increase sharply, from 15 million tons in 2005 to 112-118 million tons by 2025, of which, coal for thermo-power plants is predicted to increase from nearly five million tons to 76-78 million tons, coal for cement and construction material production from 3 million tons to 15 million tons, and coal for metallurgy from 250,000 tons to 8-9 million tons. (vinacomin website)