Vinacomin Improving Quality of Investment Projects to Prevent Losses

According to the Vietnam National Coal - Mineral Industries Holding Corporation (Vinacomin), the production of clean coal in February was estimated at 3.2 million tonnes, up 16.4 per cent over the same period, the first two months totaled 5.9 million tonnes, down 6.3 per cent over the same period last year, Of which, the clean coal production of the Corporation dropped 7.3 per cent year-on-year.

Vinacomin continues to face many difficulties casting a considerable impact on the production and business activities of the industry. In order to make up for the cost, in line with the coal consumption market, and to implement the Government's guidelines, the Corporation has issued Decision No. 3005 / QD-TKV dated December 23, 2016. Accordingly, the price of coal adjusted from 3 per cent to 10.7 per cent depending on types of coal.

Vinacomin’s General Director Dang Thanh Hai said, in 2017, Vinacomin has targeted 36 million tonnes of coal mining with the inventories falling to below 8 million tonnes. It also aims to reach profit of VND1,000 billion, up 20 per cent compared to 2016. It also targeted a turnover of US$4.75 billion, posting a 6 per cent year-on-year increase.

He said the Government has allowed coal exports in the 2017-2020 period to help the sector’s production and trade. The coal price for electricity production has increased following market prices. However, the costs of production, exploration, labour and environmental protection has also been higher, decreasing the sector’s profits, while increasing need for capital investment.

Vinacomin is eyeing average annual revenue growth between 5.5 per cent and 6 per cent, until 2020.

Prime Minister Nguyen Xuan Phuc has approved the Corporation’s five-year business production and investment plan, which seeks to produce 42 million tonnes of coal and cut the extraction losses between 5 per cent and 20 per cent. The Corporation also plans to import nearly 8 million to 9 million tonnes of coal to serve the economic sectors at home, especially in electricity generation.

Further, it will operate thermal and hydropower coal plants with a total output of 10.2 million kWh, accounting for over 4-5 per cent of the country’s total electricity.

The Corporation continues to improve the quality of its investment projects to prevent losses. The coal sector should seek solutions to protect the environment during coal exploitation, transport and usage. In addition, Vinacomin should focus on restructuring and reviewing its key products in each investment period. It should also invest in technologies and human resources to increase productivity, and labour safety.

Huong Ly