Vinacomin asks Gov’t to put coal on State monopoly commodity list
|Cua Ong Coal Company, a part of the Vinacomin has reached a total daily output of 32,000 tonnes of coal. It hopes to produce 11 million tonnes this year. — VNA/VNS Photo Nguyen Dan|
HA NOI — Viet Nam National Coal and Mineral Industries Group (Vinacomin) has recommended the Government add coal to the State monopoly commodity list so as to protect the limited natural resource.
This, according to Vinacomin, should be done irrespective of whether another substitute to replace coal is found, as coal will always be the main source of ensuring the nation’s power.
If coal is among the State monopoly commodities, a new legal framework for managing the natural resource will be created which could help protect it, Vinacomin said.
It said following discussions with foreign coal suppliers, it discovered that it would be tough to import coal due to its rising global demands and the fact that foreign coal suppliers are reluctant to sign long-term contracts to sell coal in large quantities.
Meanwhile, the Ministry of Industry and Trade reported that the country will face a shortage of coal in the future. While domestic coal production in 2010, 2015, 2020 and 2025 has been forecast at 47, 60, 70 and 80 million tonnes respectively, local demand in the coming years could grow to 37, 94, 184 and 308 million tonnes, the ministry estimated.
The country would therefore have to import large quantities of coal from 2010 to 2025.
Vinacomin recently signed a contract with two Indonesian companies to buy coal for the southern Binh Thuan Province’s Vinh Tan No1 thermal power plant which annually needs 3.5 million tonnes of coal.
As there is enough domestic coal to supply the aforementioned plant, the imported coal from Indonesia will be used for the Thanh Hoa Province’s Nghi Son No2 thermal electric plant, Vinacomin said.
Besides Indonesia, Vinacomin has also made fact-finding trips to Australia to learn how to boost coal imports for domestic thermal power plants.
Vinacomin estimates that the country will need 43 million tonnes of coal this year.
It has also recommended the Government issue incentive policies to encourage the investment in coal production in the Northern provinces of Quang Ninh, Bac Giang and Hung Yen besides researching on coal in the areas between Hong River to Hai Duong province’s Con Son. — VNS