Cement makers decry coal shortfall

A worker operates cement packing line in Viet Nam Cement Industry Corporation. Vinacomin says the group is not responsible for cement producers'insufficient coal supply. — VNA/VNS Photo Tuan Anh

HA NOI — Officials from Viet Nam National Coal and Mineral Group (Vinacomin) said the group was not responsible for cement producer's insufficient coal supplies.

Viet Nam Cement Corporation (Vicem) said last week that they did not have enough coal to continue producing cement and several plants may have to stop operating because of coal shortage.

Officials from Vinacomin said the Cement Material and Transport Joint Stock Company (Comatce), Vicem's affiliate, that purchases coal for the cement industry, had signed contracts with the group to provide 1.5 million tonnes to the cement group this year.

Under the contract, Vinacomin is scheduled to deliver 350,000 tonnes of coal to the cement industry during the first quarter, 400,000 tonnes during the second, 350,000 tonnes in the third and 400,000 tonnes in the forth.

During the first nine months of the year, the group delivered 1.18 million tonnes of coal to the cement sector, a slight increase compared with the 1.1 million tonnes they were supposed to provide in accordance with the contract.

Representatives from Vinacomin have relied on these facts to argue that they are not responsible for the cement sector's lack of coal. The group will continue to deliver the coal on schedule until the end of this year.

Le Minh Chuan, Vinacomin's deputy general director, said coal demand for the cement sector rose 20 per cent this year, from 1.25 million tonnes last year to 1.5 million tonnes.

On September 14, the cement industry asked the group to provide 170,000 more tonnes of coal to the sector during the month, a 50 per cent increase month-on-month, the representative said.

Vinacomin agreed to deliver 112,000 tonnes of coal this month and 100,000 tonnes during the next two months.

The group will provide 5.8-5.9 million tonnes of coal, which will allow Vicem to produce 50 million tonnes of cement this year.

Vinacomin said Vicem should utilise new technical and technological solutions and use coal reasonably to deal with its shortage.

The cement factories should sign contracts to purchase coal before building their factories because if they do not have coal contracts then they would create problems for themselves and coal producers, said a representative from Vinacomin. — VNS

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Coal imports to start in 2015

Vietnam is now likely to import coal only from 2015, not 2013 as
earlier forecast since many thermal power plants have fallen behind
schedule.

The steering committee managing coal imports said, however, that firms
should start looking for foreign coal suppliers immediately to ensure
there is no delay.

"Besides Australia and Indonesia,
Vietnam can also source coal from Russia by buying stakes in mines
there or purchasing the right to mine or buy coal," Nguyen Manh Quan, a
member of the committee and the head of the Heavy Industry Department,
said.

But he was unsure if power-plant investors would begin looking for coal sources any time soon.

Tran Chien Thang, deputy general director of the Vietnam National Coal
and Mineral Industries Group (Vinacomin), said the Government had
tasked his firm with importing coal for power plants but no investor had
discussed the issue yet.

"Enterprises, especially
State-owned ones, prefer local sources because costs are partly
subsidised by the Government," Quan said.

A private
firm recently signed an agreement with a foreign supplier to buy coal
for 20 years and was willing to import more to supply other companies,
Ta Van Huong, director of the Energy Department, said.

An Vien Group and VinCom Group informed the Ministry of Industry Trade
that they could help local firms source coal from Russia, Minister of
Industry and Trade Le Duong Quang said.

However,
more companies can enter the coal import business as long as they follow
Government rules, according to the ministry .

The steering committee will draft a legal framework to regulate coal imports.

It is not clear yet but Vietnam may have to import between 3 million
and 15 million tonnes of coal a year by 2015 – and 21 million to 40
million by 2020 – as more and more coal-fired power plants are built,
Vinacomin has said./.

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Coal imports to start in 2015

Vietnam is now likely to import coal only from 2015, not 2013 as earlier forecast since many thermal power plants have fallen behind schedule.

The steering committee managing coal imports said, however, that firms should start looking for foreign coal suppliers immediately to ensure there is no delay.

"Besides Australia and Indonesia, Vietnam can also source coal from Russia by buying stakes in mines there or purchasing the right to mine or buy coal," Nguyen Manh Quan, a member of the committee and the head of the Heavy Industry Department, said.

But he was unsure if power-plant investors would begin looking for coal sources any time soon.

Tran Chien Thang, deputy general director of the Vietnam National Coal and Mineral Industries Group (Vinacomin), said the Government had tasked his firm with importing coal for power plants but no investor had discussed the issue yet.

"Enterprises, especially State-owned ones, prefer local sources because costs are partly subsidised by the Government," Quan said.

A private firm recently signed an agreement with a foreign supplier to buy coal for 20 years and was willing to import more to supply other companies, Ta Van Huong, director of the Energy Department, said.

An Vien Group and VinCom Group informed the Ministry of Industry Trade that they could help local firms source coal from Russia, Minister of Industry and Trade Le Duong Quang said.

However, more companies can enter the coal import business as long as they follow Government rules, according to the ministry .

The steering committee will draft a legal framework to regulate coal imports.

It is not clear yet but Vietnam may have to import between 3 million and 15 million tonnes of coal a year by 2015 – and 21 million to 40 million by 2020 – as more and more coal-fired power plants are built, Vinacomin has said.

 

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Coal imports to start in 2015

Australia and Indonesia, Viet Nam can also obtain coal from Russia by buying stakes in mines there or purchasing rights to mine or buy coal. — VNA/VNS Photo Duy Khuong

HCM CITY — Viet Nam is now likely to import coal only from 2015, not 2013 as earlier forecast since many thermal power plants have fallen behind schedule.

The steering committee managing coal imports said, however, that firms should start looking for foreign coal suppliers immediately to ensure there is no delay.

"Besides Australia and Indonesia, Viet Nam can also source coal from Russia by buying stakes in mines there or purchasing the right to mine or buy coal," Nguyen Manh Quan, a member of the committee and the head of the Heavy Industry Department, said.

But he was unsure if power-plant investors would begin looking for coal sources any time soon.

Tran Chien Thang, deputy general director of the Viet Nam National Coal and Mineral Industries Group (Vinacomin), said the Government had tasked his firm with importing coal for power plants but no investor had discussed the issue yet.

"Enterprises, especially State-owned ones, prefer local sources because costs are partly subsidised by the Government," Quan said.

A private firm recently signed an agreement with a foreign supplier to buy coal for 20 years and was willing to import more to supply other companies, Ta Van Huong, director of the Energy Department, said.

An Vien Group and VinCom Group informed the Ministry of Industry Trade that they could help local firms source coal from Russia, Minister of Industry and Trade Le Duong Quang said.

However, more companies can enter the coal import business as long as they follow Government rules, according to the ministry .

The steering committee will draft a legal framework to regulate coal imports.

It is not clear yet but Viet Nam may have to import between 3 million and 15 million tonnes of coal a year by 2015 – and 21 million to 40 million by 2020 – as more and more coal-fired power plants are built, Vinacomin has said. — VNS

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Vietnam coal group explains preference for exports

Vincomin, a state-run coal and mineral group, said it has had to use export profits to offset the losses caused by low prices at home.

Because the government set coal prices for cement and power producers at a low level, the more coal Vinacomin sold to these two sectors, the greater their losses became, according to Vu Manh Hung, general director of the group.

According to Vinacomin, the prices of coal supplied to power plants rose in March, but domestic prices are still 60-64 percent lower than export prices.

“If the pricing problem can be solved, coal exports will be cut back sharply,” Hung said. 

Vinacomin is set to produce 25 million tons of coal this year. Due to a decline in orders, the group plans to export 18 million tons this year, down 6 million tons from 2009.

But while a majority of local coal output has been set aside for exports, many cement plants were forced to shut down due to a coal shortage.

State-run Vietnam Cement Industry Corporation, also known as Vicem, said its factories require 5,000 tons of coal every day to operate but Vinacomin can usually only meet half of that demand.

Vicem, which accounts for 38 percent of Vietnam’s cement output, also rejected an accusation by Vinacomin that local cement plants use outdated technologies that require an excessive amount of coal.

Local cement producers are using Japanese and European technologies, Vicem said, arguing that the real problem lies in a domestic coal shortage.

Vietnam will gradually cut down on coal exports as local demand  surges and supply declines, Minister of Industry and Trade Vu Huy Hoang said in May.

The country is expected to start importing coal in 2015 when a number of new power plants go online.

Analysts say it’s time for Vinacomin to reconsider its export policies to ensure sufficient supplies for the domestic market first.

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Cement makers hit by coal shortages

Vietnam Cement Industry Corpo (Vicem)'s member companies need more coal to produce cement, officials from the group have said.

Le Van Chung, chairman of the corporation's management board, said cement factories at the corporation's member companies needed 5,000 tons of coal a day for production, but the Vietnam Coal and Mineral Industry Group (Vinacomin) provided half of their demand at 2,500-3,000 tons per day.

"We had to halt operations temporarily, and if we don't receive an adequate supply of coal in the coming days, many Vicem factories will stop production," Chung said.

Factories in Hoang Thach, But Son, Bim Son, Tam Diep, Hoang Mai, Hai Phong and Ha Tien are experiencing coal shortages.

Hoang Thach Cement Company director Dao Ngoc Binh said his company had three kilns that consume 1,200 tons of coal, but the company had to stop using one kiln on September 27 due to a lack of coal.

The company has about 600 tons of coal in stock, which is not enough to keep the remaining two kilns operational, Binh said.

Cement producers But Son, Bim Son, Tam Diep and Hoang Mai have between 5,000-10,000 tons of coal for production for the next 5-15 days.

The factories acted on their initiative to get more coal for their production, but at the moment, the member companies within Vinacomin did not have enough coal to sell to cement factories, Chung said.

Vicem estimated that the cement industry needed 4 million tons of coal to supply the factories for the remainder of the year, he said.

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Cement makers hit by coal shortages

Vietnam Cement Industry Corpo (Vicem)'s member companies need more coal to produce cement, officials from the group have said.

Le Van Chung, chairman of the corporation's management board, said cement factories at the corporation's member companies needed 5,000 tons of coal a day for production, but the Vietnam Coal and Mineral Industry Group (Vinacomin) provided half of their demand at 2,500-3,000 tons per day.

"We had to halt operations temporarily, and if we don't receive an adequate supply of coal in the coming days, many Vicem factories will stop production," Chung said.

Factories in Hoang Thach, But Son, Bim Son, Tam Diep, Hoang Mai, Hai Phong and Ha Tien are experiencing coal shortages.

Hoang Thach Cement Company director Dao Ngoc Binh said his company had three kilns that consume 1,200 tons of coal, but the company had to stop using one kiln on September 27 due to a lack of coal.

The company has about 600 tons of coal in stock, which is not enough to keep the remaining two kilns operational, Binh said.

Cement producers But Son, Bim Son, Tam Diep and Hoang Mai have between 5,000-10,000 tons of coal for production for the next 5-15 days.

The factories acted on their initiative to get more coal for their production, but at the moment, the member companies within Vinacomin did not have enough coal to sell to cement factories, Chung said.

Vicem estimated that the cement industry needed 4 million tons of coal to supply the factories for the remainder of the year, he said.

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Cement makers hit by coal shortages

Vietnam Cement Industry Corporation (Vicem)'s member companies need
more coal to produce cement, officials from the group have said.

Le Van Chung, chairman of the corporation's management board, said
cement factories at the corporation's member companies needed 5,000
tonnes of coal a day for production, but the Vietnam Coal and Mineral
Industry Group (Vinacomin) provided half of their demand at 2,500-3,000
tonnes per day.

"We had to halt operations
temporarily, and if we don't receive an adequate supply of coal in the
coming days, many Vicem factories will stop production," Chung said.

Factories in Hoang Thach, But Son, Bim Son, Tam Diep, Hoang Mai, Hai Phong and Ha Tien are experiencing coal shortages.

Hoang Thach Cement Company director Dao Ngoc Binh said his company had
three kilns that consume 1,200 tonnes of coal, but the company had to
stop using one kiln on September 27 due to a lack of coal.

The company has about 600 tonnes of coal in stock, which is not enough
to keep the remaining two kilns operational, Binh said.

Cement producers But Son, Bim Son, Tam Diep and Hoang Mai have between
5,000-10,000 tonnes of coal for production for the next 5-15 days.

The factories acted on their initiative to get more coal for their
production, but at the moment, the member companies within Vinacomin did
not have enough coal to sell to cement factories, Chung said.

Vicem estimated that the cement industry needed 4 million tonnes of
coal to supply the factories for the remainder of the year, he said. /.

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