The Viet Nam National Coal and Mineral Industries Group (Vinacomin) and the US-based Xcoal Group said the prospects for importing US coal were positive, the Dau Tu (Investment) newspaper has reported.
|Transport of coal at the Cam Pha Port and Logistics Company, a member of Vinacomin. The group plans to import coal from the US to meet increased domestic demand. — Photo camphaport.com.vn|
In the short term, Xcoal will focus on promoting suitable US coal imports to Viet Nam, according to reports about a recent meeting between the two groups.
Vinacomin is the leading coal producer and supplier in Viet Nam and is one of three key groups to ensure national energy security. Its coal output is over 40 million tonnes per year.
As the demand for coal for electricity production in Viet Nam has increased strongly, Vinacomin has been importing coal from other markets to blend with domestic coal, supplying thermal electric plants.
Xcoal is involved in coal mine development, financing, and related infrastructure projects, and is actively pursuing investment opportunities in the global coal supply chain. It is headquartered in the US state of Pennsylvania and has branches in 20 countries.
Xcoal is a coal supplier for many countries, including, India, Japan, China, South Korea, Europe and the Americas.
In the first seven months of the year, Vinacomin produced 24.5 million tonnes of coal, up 1.5 million tonnes over the same period last year.
Coal consumption in the first seven months reached 26.6 million tonnes, including 21.4 million tonnes for electricity production, up by 18 per cent year on year.
Vinacomin's total revenue during the first seven month reached about VND80 trillion (US$3.4 billion), an increase of 6.3 per cent year on year, including VND45.6 trillion from coal, up by 16 per cent.
In the first half of this year, the Vinacomin Coal Import Export Joint Stock Company (Coalimex), which is in charge of importing coal for Vinacomin, imported about 1.23 million tonnes of coal with total value of $84.1 million.
However, Coalimex has also faced many difficulties, including poor infrastructure and logistics for coal import activities, while demand for imported coal has increased as well as diversification of types of international transport ships.
In the first six months, Viet Nam imported 20.3 million tonnes of coal with total value of $2 billion. — VNS
Many thermopower and cement plants in Hai Phong and Quang Ninh do not have enough coal to operate.
In 2018, the total amount coal imported by Vietnam was 22.86 million, of which around 50% came from Indonesia with an amount of 11.16 million tons, said Indonesian Ambassador to Vietnam Ibnu Hadi at a business forum last week.