Vietnam is likely not to import coal for power plants from 2012 as the country can boost its domestic production because it has huge coal deposits in the northern delta region.
Doan Van Kien, chairman of Vietnam&rsquos top miner-Vinacomin, said coal reserves in northern Quang Ninh province is likely to reach 10 billion tons, much higher than 3.5 billion tons which was surveyed previously.
In addition, Vietnam has 7 billion tons of brown coal, which is located in the Red River Delta, Kien said.
With such reserves, Vinacominx is capable to raise its annual production to 70 million -80 million tons, from 43 million this year, Kien said.
Vinacomin has recently inked two framework agreements to import between 3.5 million and 5 million tons of coal from Indonesia a year within 15 years with market prices at the buying time, expected after 2012. However, Vietnam is facing difficulty in securing long-term import contracts because of uns market conditions, Kien added.
According to Vinacomin&rsquos calculations, Vietnam needs 6.48 million tons of coal for electricity production in 2008, 15.3 million tons in 2010, 32.5 million tons in 2012, 43.9 million tons in 2015 and 45.46 million tons in 2020.
To ensure 32.5 million tons of coal for power plants in 2012, Vietnam will have to import 8 million tons of coal, and rising to 11.4 million tons by 2015.
However, Vinacomin can&rsquot confirm whether its future supply will meet demand for thermo-power plants which will be built according to the government&rsquos Major Electricity Plan VI.
According to Kien, the government has asked Vinacomin to import coal for power plants, however, no any details for such import plans are available right now.
Vietnam reportedly generated 35.9 billion kWh of electricity in Jan-Jun, up 15.5% on year. The country also produced 22.423 million tons during the period, up 8% on year. (Investment, GSO June)
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