Gov't enables two million tonnes of coal exports this year
Gov't enables two million tonnes of coal exports this year
The Government allowed Viet Nam National Coal and Mineral Industries Holding (Vinacomin) and Dong Bac corporations to export more than two million tonnes of coal this year.
The permission followed recommendations by the Ministry of Industry and Trade, which suggested that the Government should enable coal exports to the amount of 2.05 million tonnes every year between 2016 and 2020.
According to Dau tu (Vietnam Investment Review) online, Vinacomin would export two million tonnes and Dong Bac, a business run by the Ministry of Defense, would export 50,000 tonnes.Deputy Minister of Industry and Trade Cao Quoc Hung said Viet Nam's coal export quantities had declined over the last five years, falling from roughly 17 million tonnes in 2011 to around six million tonnes in 2015.
"Export activities of Vinacomin and Dong Bac during 2011-15 were suitable to development directions adopted by the Prime Minister for the coal industry," said Hung.
The Department of Customs in northern Quang Ninh Province reported that about 30,800 tonnes of coal were exported from this province during the first quarter of this year, down 94 per cent over the same period last year.
Coal export values from this locality reached US$2.2 million in the first quarter, a year-on-year decline of 96 per cent.
Tax revenues collected from the coal exports here reached around VNĐ5 billion ($220,200), also dropping by 96 per cent year-on-year.
The ministry said domestic demand for coal in the use of electricity production was expected to rise over the next few years, so it was necessary to balance coal distribution to ensure national energy stability.
Industry insiders said that coal yields would not be able to see any sudden increases because investments in a mine usually take between six to eight years before mining activities could begin.
Therefore, the coal sector was accelerating exploration and upgrading efforts to enhance the capacity of existing mines, in a bid to maximise coal quantities for domestic use in the years ahead.
The ministry said that assuring high-quality exports would be a condition for the domestic coal industry to receive long-term financing and credit guarantees from Japan and South Korea in the coming years.
Vinacomin is based in Ha Noi, and Dong Bac Corporation is headquartered in Ha Long City, Quang Ninh.
