Market and product
High electricity demand breaks coal industry development plan
VietNamNet Bridge – The coal demand for electricity production is always themain factor for consideration when planning the coal industry program. However,the high demand for electricity, which goes beyond all expectations, has spoiledthe programming.
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According to the Vietnam Coal and Mineral Industries Group (Vinacomin), the coaloutput needed to run thermopower plants in the power network development planNo. 7 (for the period of 2011-2020, with the vision until 2020) would beincreasingly high.
It is estimated that by 2015, Vietnam would lack 15 million tons of coal and theamount would be fed by imports. From 2020 onwards, Vinacomin will put intooperation the Red River coal basin.
The development plan broken
Pham Manh Thang, General Director of the Energy Directorate under the Ministryof Industry and Trade, has anticipated that the coal run thermopower plantswould gobble up a very huge amount of coal in the next 20 years.
The power network development plan No. 7 shows that 46 power plants would becomeoperational in 2011-2020, which would consume 77 million tons. Meanwhile,domestic coal output would satisfy the demand of 21 plants, providing about 29million tons of coals.
This means that the other 25 plants would have to use import coal, estimated at48 million tons.
By 2030, domestic coal production would be able to provide 31 million tons outof the total amount of 160 million tons needed for 70 power plants. As such, theimports in the period are believed to reach 130 million tons.
The coal industry development program compiled by the Ministry of Industry andTrade has quickly been broken due to the overly high demand from power plants.
The ministry has said that Vietnam would focus on exploiting the potentials ofthe Northeast coal basin. The commercial exploitation of the Red River coalbasin would depend on the trial exploitation, while the coal from the basinwould be put into calculation from 2020 with the expected output of 0.5-1million tons of merchandize coal.
Besides, Vietnam would also spend money to build new mines with the capacity of3 million tons per mine per annum on the areas which are under the trialexploration.
By 2015, investments would be made to upgrade the productivity of the 61existing mines, and build up 25 new more mines to churn out 55-58 million tons.
The new coal development program has pointed out that a huge capital amount of317,736 billion dong would be needed by 2020 to fulfill the tasks, which meansthat Vietnam would spend 35,304 billion dong a year for the plan implementation.
Though Vietnam is considering importing coal to serve domestic thermopowerplants, it would still keep exporting high quality coal, which Vietnam stilldoes not need for the immediate time.
Vu Thanh Lam, Deputy General Director of Vinacomin, said the export products arehigh quality products with high sale prices. The group plans to export 13.5-14.5million tons of coal in 2012, while the total output is expected to reach 45.5million tons, and 31-32 million tons would be reserved for domestic consumption.
By 2015, Lam said, Vinacomin would still export 3 million tons of coal a year.
However, Nguyen Khac Tho, Deputy General Director of the Energy Directorate, haspointed out that the coal pricing policy would decide the output. Currently,Vinacoal still has to sell coal at the prices lower than the production costs topower plants.
The current prices are just equal to 57-63 percent of the production cost in2010 and 51-55 percent of the production costs in 2011.
It is estimated that by 2015, Vietnam would lack 15 million tons of coal and theamount would be fed by imports. From 2020 onwards, Vinacomin will put intooperation the Red River coal basin.
The development plan broken
Pham Manh Thang, General Director of the Energy Directorate under the Ministryof Industry and Trade, has anticipated that the coal run thermopower plantswould gobble up a very huge amount of coal in the next 20 years.
The power network development plan No. 7 shows that 46 power plants would becomeoperational in 2011-2020, which would consume 77 million tons. Meanwhile,domestic coal output would satisfy the demand of 21 plants, providing about 29million tons of coals.
This means that the other 25 plants would have to use import coal, estimated at48 million tons.
By 2030, domestic coal production would be able to provide 31 million tons outof the total amount of 160 million tons needed for 70 power plants. As such, theimports in the period are believed to reach 130 million tons.
The coal industry development program compiled by the Ministry of Industry andTrade has quickly been broken due to the overly high demand from power plants.
The ministry has said that Vietnam would focus on exploiting the potentials ofthe Northeast coal basin. The commercial exploitation of the Red River coalbasin would depend on the trial exploitation, while the coal from the basinwould be put into calculation from 2020 with the expected output of 0.5-1million tons of merchandize coal.
Besides, Vietnam would also spend money to build new mines with the capacity of3 million tons per mine per annum on the areas which are under the trialexploration.
By 2015, investments would be made to upgrade the productivity of the 61existing mines, and build up 25 new more mines to churn out 55-58 million tons.
The new coal development program has pointed out that a huge capital amount of317,736 billion dong would be needed by 2020 to fulfill the tasks, which meansthat Vietnam would spend 35,304 billion dong a year for the plan implementation.
Though Vietnam is considering importing coal to serve domestic thermopowerplants, it would still keep exporting high quality coal, which Vietnam stilldoes not need for the immediate time.
Vu Thanh Lam, Deputy General Director of Vinacomin, said the export products arehigh quality products with high sale prices. The group plans to export 13.5-14.5million tons of coal in 2012, while the total output is expected to reach 45.5million tons, and 31-32 million tons would be reserved for domestic consumption.
By 2015, Lam said, Vinacomin would still export 3 million tons of coal a year.
However, Nguyen Khac Tho, Deputy General Director of the Energy Directorate, haspointed out that the coal pricing policy would decide the output. Currently,Vinacoal still has to sell coal at the prices lower than the production costs topower plants.
The current prices are just equal to 57-63 percent of the production cost in2010 and 51-55 percent of the production costs in 2011.
