The Vietnam National Coal-Mineral Industries Group (Vinacomin) April 15 signed contracts with two foreign partners to carry out two coal mine projects at the Red River delta coal basin, state media reported.
The Red River Energy Company, starting its operation the same day, represents Vinacomin in its joint ventures with the Chinese import-export company CMC and the U.S. group Bantry Bay Ventures-Asia LLC (“BBV”).
The ventures will develop the Binh Minh and Khoai Chau II coal mines in Hung Yen province. The mines are estimated to have an annual capacity of five million tons and three million tons, respectively.
The Red River delta coal basin, which stretches on an area of 3,500 square kilometers from Hanoi to the northern provinces of Hung Yen, Hai Duong and Thai Binh, has an estimated reserve of 210 billion tons.
The prime minister earlier decided to include Red River delta coal projects into the list of projects calling for foreign investment in the form of joint venture, with the first phase requiring investment capital of US$200 million-US$500 million.
Vinacomin signed with CMC and BBV memoranda of understanding on exploring and tapping coal at the Binh Minh and Khoai Chau II mines. It also signed a contract on exploring coal at the Khoai Chau I mine with Marubeni of Japan.
According to the coal industry development plan, the exploitation of the three mines will need more than VND17 trillion (US$1.06 billion). The coal from the mines is expected to be of good quality and is used for steel refining, thermo-power, cement and chemicals.
Deputy Director of the Red River Energy Company Hong Tran Viet Su said in addition to the three coal mines which have a total designed capacity of 9 million tons a year, the company will build a coal gasification plant, a liquefied gas plant, a coal-fed diesel plant and several thermo-electric power plants with a combined capacity of 3,600 MW.
The first coal mine is scheduled to start in 2012. (Saigon Liberation, VNA)
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