Vietnam Deputy Prime Minister Hoang Trung Hai has asked the country's coal sector to prioritise coal production for domestic use, thereby ensuring the stability of the national energy reserve. In order to extract 55 million tonnes (mt) of coal by 2020, the sector, according to the industry sources, is expected to expand 10 mines and open 40 additional pits.
During a conference convened by the Vietnam National Coal and Mineral Industries Group (Vinacomin) in Ha Noi yesterday to review its 2015 activities and launch 2016 tasks, PM requested Vinacomin to increase exploration and mining using advanced and eco-friendly technologies. It was required to devise cost-effective business plans, and solutions to climate change, while further promoting personnel training and improving the livelihoods of workers.
Dang Thanh Hai, Vinacomin general director, said Vinacomin plans to earn more than VND110 trillion ($4.8 billion) from selling 38 mt of coal, 1.2 mt of which is for export. Imported coal is estimated at 1.5 mt.
Alunminium projects on the anvil
In 2016, Vinacomin will continue to manage a host of projects of which continuing operations at the Lam Dong aluminium-bauxite complex and starting operations at the Nhan Co aluminium factory remain a priority.
In a report published earlier 2015, the Ministry of Industry and Trade (MOIT) had shown that Vietnam has to import 100 percent of aluminum it needs, about 500,000 tons a year, worth $1.2 billion. The demand will increase rapidly as a result of the government’s policy on speeding up the development of support industries.
The aluminum industry, if it can be developed, is expected to make up 0.3 percentage points of GDP. The aluminum industry development would also help develop the production of aluminum-based goods, including household-use appliances, motor components and others.
To facilitate this growth, coal production in the country has to increase reasonably, otherwise, the country will have to depend on imported coal which will increase CoP enormously, eventually hurting the economy as a whole.
Last year, Vinacomin turned out 37.6 million tonnes of coal and sold 35.5 million tonnes domestically, including 1.26 million tonnes that was shipped overseas. In 2015, it raked in more than VND106.8 trillion ($4.85 billion), up 3 per cent from 2014 and contributed VND12.5 trillion ($56.8 million) to the State budget, or 103.4 per cent of their target.
