Domestic Coal Demand Rises

Domestic Coal Demand Rises - 

In the first quarter of this year, the domestic coal production sector ensured adequate employment and stable income for workers while sales were quite good.

By the end of March 2014, the Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin) sold 9.35 million tonnes of coal, of which 6.8 million tonnes was for domestic consumption. Coal revenue in the quarter reached VND13,300 billion, including VND510 billion in March. This result showed that the domestic coal demand rose sharply over the previous periods.

Stable production

Other business indicators also reached targets, overall fulfilling a quarter of the full-year plan. Notably, electricity production realised 31 percent of the yearly plan.

Some units like Vinacomin Nui Beo Coal Joint Stock Company completed 57 percent of the annual plan. Vinacomin Group also accelerated the privatisation and restructuring of State-owned enterprises as requested by the Government.

However, due to bad weather and frequent rains, the group only stripped 35.2 million cubic metres of rock and soil in the first quarter, equal to less than 20 percent of the full-year plan and down 23 percent from the same period of 2013. Rains and bad weather slowed the land stripping work and raised transport costs and other fees because of unfavourable movements.

According to experts, the domestic coal demand will continue to rise as large-scaled coal-fired thermal power complexes go into operation like Mong Duong, Vinh Tan, Vung Ang and Quynh Lap. Hence, the group must prepare coalmining facilities and mines from now to meet the demand in the coming years.

Tasks for the quarter

Vinacomin CEO Le Minh Chuan said tasks in the second quarter and 2014 are quite heavy. The group will strive to fulfil more than 25 percent of the yearly plan in the second quarter and bring the overall six-month result to at least 52 percent of the full-year plan. The group will surge its units to ensure financial balance, tighten expenses and rationalise production. Coalmining firms will process coal the site while logistics units will upgrade transport facilities and traffic infrastructure to ensure coal transportation. Investing will be based on plans approved by Vinacomin but more important and more urgent one will be given priority.

The group will monitor market demand, keep good relationships with customers, strictly control the quality of coal delivered, and ensure delivery schedules. As the domestic demand is forecast to rise, the domestic supply must be given priority, he said. CEO Chuan also reminded Vinacomin units to ensure safety and prepare careful plans for this rainy season as the weather is forecast to be complex. At the same time, the group will strengthen coordination with local governments to effectively manage resources, prevent illegal coal mining, transportation and consumption.

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