Enhancing Investment to Cope with Climate Change

Vinacomin owns extensive production and business areas throughout the country, mainly focusing on mountains, coastal regions and plains. In particular, some concentrated material and production areas are located on mountain sides. Therefore, they are vulnerable to landslides and floods. Moreover, coastal production areas are affected by flood waters, high tides and sea-level rise. According to studies, these impacts have contributed to ravage mineral deposits, causing environmental pollution and difficulties for the investigation, evaluation, exploration and mining.

 

Some of its important mines have been destroyed by nature. Climate change causes an increase in flood waters in the rainy season and difficulties for production activities and transportation, negatively affecting the enterprise's assets. For example, in 2007, flood waters damaged the Coc Sau Coal JSC. A large amount of waste was spilled out to Cua Ong, Quang Ninh province, causing environmental pollution. In addition, this amount of waste land destroyed homes and crops. Total losses were estimated to reach VND18 billion. Another typical example was a case in Cam Pha Town, Quang Ninh province on November 12, 2010, when a cracked furnace killed three workers and wounded one worker in the Duong Huy Coal Co., Ltd.

 

In recent times, Vinacomin has invested billions of dong in environmental impact assessment (EIA) reports for coal mines and ports. By the end of 2012, in 67 coal mines and 12 coal ports, there were 66 coal mines and 7 ports implementing an EIA report. In addition, four coal ports committed to protecting the environment.

 

Together with the completion of EIA reports, coal production and business units have adopted many environmental protection measures in the process of coal mining, processing and trading. In particular, the observation work and submitting periodic reports to the Department of Natural Resources and Environment have been taken seriously. Results showed that most of the observation parameters have reached national technical regulations on the environment.

 

Vinacomin and coal production and business units in Quang Ninh province have invested in the construction of 32 wastewater treatment plants for units in the coal industry (six plants were completed and put into operation in 2012), contributing to improve the quality of water resources. According to Vinacomin's latest report, 25 wastewater treatment plants were being constructed and open-cast coal mines in 19 areas would also be invested in the future.

 

Vinacomin has also adopted action plans. Open-cast coal mines and pits should supplement the drainage system by high capacity pressure pumps. Moreover, the group will be active in coal port planning, removing small coal ports and building modern large ports. In particular, the construction of silos and the application of new transportation methods will be implemented by 2020. Vinacomin is currently constructing a conveyor to transport coal from Mao Khe Mine (Dong Trieu, Quang Ninh) to Ben Can Port.

 

In the development plan, the coal industry said that the industry would stop the construction of coal screening stations at ports. Waste dumps will be newly designed taking into account environmental protection measures. In the coming years, Vinacomin will continue to promote reforestation in Quang Ninh province and other regions. Vinacomin is cooperating with international corporations to apply modern technology in order to reduce gas emissions in its power plants. In particular, the application of inverters to reduce power consumption has been implemented. Moreover, the group intends to construct solar and wind power plants on tailings areas. Awareness programmes over climate change and rising sea levels have been put into action since 2010 for staff in the group. In addition, a climate change response plan will be integrated in the group's development planning and long-term production and business activities. Plans focusing on preventing floods and landslides, and constructing drainage systems during the rainy season, will be carried out in the near future.