Cheap Russian coal provides top energy
Cheap Russian coal provides top energy
Steelmaker Hoa Phat Group in an effort to diversify energy supplies and reignite the slowing steel industry made its first import of anthracite coal (hard coal) from Russia last week.
Five thousand tonnes of coal to be used to assist steel production, is VND270,000 (US$12.9) per tonne cheaper than the domestic price.
Despite the low cost, its quality is reported to be equal to the coal dust 2HG produced by the Viet Nam National Coal – Mineral Industries Holding Corporation Ltd (Vinacomin).
According to the director of Hoa Phat Energy Company Hoang Duc Thuan, the purchase was in line with the strategy of diversifying sources of raw materials to avoid dependence on a sole provider, while lowering steel prices.
Thuan said that as world coal prices decrease, the import would help meet the raw material demand for producing coke – a vital ingredient in the steel making process, adding that the factory needed about 10,000 tonnes of anthracite per month to be converted into coke.
Currently, the raw materials used for coke production by Hoa Phat are mainly fat coal imported from Australasia and domestic anthracite coal from Vinacomin
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