It has proposed raising output in 2022 at the mines of Vang Danh, Bac Coc Sau and Cao Son. The additional output would be lower than 15 percent of the capacity stipulated in the mining license. 

In a report to the Ministry of Industry and Trade (MOIT), Vinacomin said that coal demand is extremely high. In early 2022, Vinacomin asked the Ministry of Natural Resources and the Environment (MONRE) to increase capacity in 2022 by slightly less than 15 percent of six coal mining licenses. The General Department of Geology and Minerals of Vietnam (DGMV) under MONRE has approved the proposal.

Later, Vinacomin continued asking MONRE’s permission to increase mining capacity by under 15 percent at Vang Danh (to 225,000 tons per annum), Bac Coc Sau (800,000 tons per annum) and exploit coal at maximum capacity at Cao Son (3.5 million tons per annum).

On November 16, MOIT sent a dispatch to DGMV, saying that Vinacomin’s proposal is reasonable. It asked to consider the situation and allow Vinacomin to increase mining capacity, provided that it strictly observes regulations on safety and environmental protection.

According to Vinacomin, coal used for electricity generation will reach 35.5 million tons this year, or 101 percent of the yearly plan. Currently, coal used for electricity production is domestic coal mixed with imports. Coal demand will continue to increase and it will be more difficult to ensure sufficient supply of coal to power plants.

In 2023, Vinacomin plans to produce 39.05 million tons of coal and import 7 million tons. About 45.5 million tons of coal would be consumed, including 38.58 million tons for electricity production.

In a previous report, MOIT said that because of the recovery of the world’s economy and the military conflict between Russia and Ukraine, demand for coal is increasing rapidly and the coal supply is short. The coal price in the world market and the transportation costs are high, which makes it difficult to import coal.

In January-July 2022, coal used for electricity generation totaled 25.26 million tons, equal to 95.12 percent of the same period 2021.

Tran Thuy