Coal producer sees struggle ahead for second quarter

Coal producer sees struggle ahead for second quarter

The Viet Nam National Coal and Mineral Industries Holding Corporation (Vinacomin) has urged members to fully exploit market conditions, as coal consumption in the second quarter could face difficulties.

In an online meeting last week, Nguyen Van Bien, Deputy Director of Vinacomin, the country's top miner said that coal demands are low while the world's coal prices in the second quarter are declining compared with the first quarter.

Vinacomin's inventory remains high at roughly 600,000 tonnes of coal, Bien said.

Vinacomin targets to produce and consume 9 to 10 million tonnes of coal in the second quarter of 2014. The corporation is also hoping to complete 50-52 per cent of the year's target in the first half of the year.

Besides encouraging members, whose production costs are low, to increase output in the second quarter, Vinacomin also requires other members with higher production costs to cut output.

In the first quarter of this year, despite the unfavourable weather, members of Vinacomin had managed to maintain their production levels, ensure jobs and income for their employees.

Vinacomin completed 25 per cent of its annual plans. The corporation produced 9.7 million tonnes of coal, fulfilling 25.6 per cent of yearly plan. Coal consumption was estimated at 9.35 million tonnes, meeting 26.7 per cent of yearly target.

The group generated VND25.8 trillion (US$1.22 billion) revenues or 24.5 per cent of annual plan, up 8.5 per cent on year. Notably, revenues from electricity production and sales hit 31.1 per cent of yearly plan.

Vinacomin's coal consumption last year was estimated at 39 million tonnes, almost the same as that of 2012, including 11.6 million tonnes for exports, down 19.6 per cent, year on year and 27.4 million tonnes of domestic consumption, up 11 per cent, year on year.

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