Recently, the Government requested the Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin) not to export dust coal in 2015. Accordingly, the group is expected to export 1 million tonnes of coal in the year, a decrease of 2 million tonnes compared with the earlier plan. Declined export volume has placed tremendous pressures on Vinacomin’s coal sales and meeting the sales target of 38 million tonnes of coal this year is highly unlikely.
Vinacomin General Director Dang Thanh Hai has ordered and directed the Group’s units to rebalance coal production and consumption plans in the remaining months of 2015, revise down crude coal output by 3 million tonnes and cut the sales target to no less than 36 million tonnes in 2015.
Coal producers have been told to cut costs, reduce coal loss, stabilise employment and incomes for workers in the context of unimproved coal selling prices and existing difficulties in 2015. Companies which are forced to reduce output must have measures to manage costs, optimise technological criteria, improve coal quality to ensure revenue, and ensure stable and better incomes and treatment for employees.
Since the start of the second quarter, it has been impossible to increase selling prices because of slow sales and fierce competition pressures. Therefore, the coal industry needs to keep a close track on market developments and introduce appropriate measures to boost coal consumption and reduce inventories in an attempt to realise over 50 percent of the full-year plan in the first six months. Coal consumption is projected to reach 10 million tonnes in the second quarter, of which 500,000 tonnes will be exported and over 9.5 million tonnes will be sold domestically.
Based on actual sales, the Group will balance, operate and adjust production to fit market demands to ensure stable production operation and keep reasonable inventories, while accelerating coal mine construction and preparing for higher coal demand in 2016.
Coal producers, logistics firms and traders will also focus on collecting debts from customers and agents.
Logistics companies must ensure enough vehicles for coal transportation for coal producers, and work with other units in the region to collect coal to ensure sufficient delivery for customers.
Vinacomin will monitor the progress of coal mine projects, expand mechanisation application to mining conditions, optimise region-based transportation in order to minimise transport costs, and speed up pilot coal mining projects in the Red River Delta.
Costs, product prices, production and construction investment services will be further controlled and rationalised by the Group to ensure business efficiency. Besides, the coal industry will carefully review construction plans and items of every project to maximise the work it can do and minimise the hiring of outside contractors to ensure good employment for employees and promote equipment efficiency.
Vinacomin will also inspect and urge its production units to apply measures and solutions to ensure production safety, tighten control and supervision over coal production, processing, transportation and sales to prevent losses.
Huong Ly
Vietnamese
