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

Related Articles

• Assoc insists on power price hike despite protests
• Widow of late Lao Party leader visits
• ASEAN's socio-cultural issues promoted at Da Nang meeting
• Government vows to bail out insolvent shipbuilder Vinashin
• Energy group asks for 50% price hike

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. /.

Related Articles

• Cement makers hit by coal shortages
• Lawmakers strike cautious note about high inflation
• Girls gear up for Vietnam’s Next Top Model
• Vietnam set to face serious power shortage in 2013
• ACWO General Assembly to convene in Hanoi