At the 2015 annual Review and the 2016 Mission Conference, the Vietnam National Coal and Mineral Industries Group (TKV) on January 14, 2016 the Deputy Prime Minister Hoang Trung Hai demanded that the coal industry had to achieve sustainable extraction, relevant use and export as well as the priority given to domestic coal production to respond to the national energy stability.

Accordingly, the coal industry will have to extend 10 mines, to make investment into construction of 40 mines, and to maintain the existing mines from now until 2020 to ensure an extraction of 55 million tons. 

Priority must be given to domestic coal production to ensure the national energy stability. Photo: Trong Dat/VNA

Deputy Prime Minister Hoang Trung Hai said that in the past 5 years, the coal industry has focused on the relevant export and import targets, and in 2015 it imported about 7.5 million tons of coal. Although power supply has not been much of the output, the import has met the demands of many other sectors and in terms of reasonable prices of coal.

The Deputy Prime Minister also requested that the coal industry should continue intensively the prospecting and exploration for coal, because the reserves are likely to run out of coal supply for the future time. However, the Deputy Prime Minister also noted that the exploration and extraction of coal should be done in harmony with environmental protection. "We need to use the state-of-the-art and latest technology, the most modern one for exploration and extraction of these resources to ensure reserves for sustainable resource for future generations." - the Deputy Prime Minister said.

Deputy Prime Minister Hoang Trung Hai delivering his speech at the conference.

Photo: VNA

According to Deputy Prime Minister Hoang Trung Hai, in 2016 there are many challenges to the economy, the oil prices are on track to decrease, exerting many impact on falling prices of fuel and other ores in the world. Apart from these impacts, Vietnam has signed several free trade agreements which intrigue more efforts of a sector, the economic sector as well as the whole community. Consequently, the coal industry needs to develop plans for cost savings, to lower costs and also to have the solutions in response to the climate change; it is also to boost the training of staff and to implement the solutions for improving the lives of miners.

Mr. Dang Thanh Hai, General Director of the Group, said, in 2016, the Group strives to achieve a total revenue of VND 110 016 billion, with targeted sales volume of 38 million tons of coal; which 36.8 million tons are for domestic consumption, 1.2 million tons for export. The raw coal production is set at 40.12 million tons; including 16.2 million tons from opencast coal mines, 23.4 million tons from pit coal mines; and 432,000 tons from contractors' coal mines. Clean coal production reaches 36.65 million tons; and the expected coal import is about 1.5 million tons.  Alumina Products from Lam Dong and Nhan Co Aluminum Company will reach 800 .000 tons, while Thach Khe Company plans to extract 800,000 tons of iron . The commercial power output is planned at 9.2 billion kWh.

To achieve the planned goals, the Group will implement  synchronized solutions, increase the production, consumption, and efficiency in the business sector. Regarding the coal production, it is to maintain the stable production, employment and incomes for workers, while imports are reasonable, to meet the demands of various types of coal for users.

In the area of bauxite extraction, and production, it is to get hold to the operational technology in the Lam Dong Bauxite Aluminum complex, ensuring the absolute safety of the dams and reservoirs, stabilizing the alumina quality and utilizing 90-100% of the plant capacity, in combination with enhanced management measures to optimize the technological indicators and material consumption norms, to reduce the production costs. Expeditiously, it is a need to complete the Nhan Co Aluminum Plant, Cao Bang Steel Complex and hand them over to the State. The iron ore project progress must be ensured for reasonable and effective extraction and consumption in Thach Khe iron ore mine.

In addition, the Group also focuses on improving the productivity, efficiency of production of copper, zinc, tin, and other ores. With its primary mineral products in hand, the Minerals Corporation will operate to reduce the production cost in the context of decreasing prices of minerals to keep its finance in balance.

In the field of electricity, it is to concentrate on the stable operation, timely repair and maintenance to increase the optimal capacity of the power plants: Na Duong, Cao Ngan, Son Dong, Cam Pha 1, Cam Pha 2, Mao Khe, Dong Nai 5, and Nong Son, and ensure the construction progress of the Na Duong 2 Power Plant, and  Quynh Lap 1 Power Plant...

In 2015, despite the difficulties and challenges of lower coal prices and also being affected by the floods during July 2015, the Group still produced 37.6 million tons of coal, of which 35.5 million tons was for consumption, 1.26 million tons for export. The Group's revenue in 2015 is VND 106.86 trillion, up 3% compared with 2014; a contribution of VND 12.5 trillion into the state budget, accounting for 103.4% compared to the plan; the profit is VND 600 billion.

Trong Tan