May 17, 2008

Vinacomin sets 60 million tonne coal target by 2015

VNS reported that the Viet Nam National Coal Mineral Industries Group expects to produce 60 million tonnes of coal per year by 2015, 150% more than at present.

Mr Tran Xuan Hoa general director of Vinacomin said that to reach its goal, Vinacomin plans to open seven to 10 new coal mines, adding 1.5 to 2 million tonnes to capacity each year between 2008-15, even though exploratory costs are high.

Mr Hao said that "With its existing facilities and technology, Vinacomin can exploit mines up to 100 m underground, much less than the several hundred meters in the rest of the world. We are willing to welcome foreign investors to exploit our coal.”

Mr Hao further added that "Exploratory results show Viet Nam has great reserves of coal," including 10 billion tonnes at 300 meter in the northern province of Quang Ninh and hundreds of billions of tonnes at a depth of 1,000 meter in the Red River Delta region.

According to Mr Hoa, Vinacomin has established two subsidiaries in preparation for exploiting coal in Quang Ninh’s Cam Pha and Uong Bi districts. He added that "It normally takes two or three years to develop a mine, but as the two companies are authorized by the Government to hire contractors the mines will begin operation sooner.”

Mr Hoa said that besides developing new mines, the national coal group is negotiating with partners to import coal in order to meet domestic demand estimated at 70 to 80 million tonnes in 2015, mostly for use in thermo electric plants.

Vinacomin at present capacity is about 40 million tonnes a year, enough to serve domestic demand as well as exports.