Coal firm eyes another price hike

The Vietnam National Coal and Mineral Industries Group (Vinacomin), which has just raised the prices of coal it sells to monopoly power company Electricity of Vietnam Group, has indicated it plans another hike in December.

It is aimed at funding fresh investments by Vinacomin, its deputy director, Nguyen Van Hai, said.

The state-owned coal company is planning to invest VND2 -2.5 trillion (US$105.3-131.6 million) each in five new mines that will yield an estimated 1.5-2 million tons a year.

The price increase would also help raise miners’ wages, Hai said, adding the group is considering increasing coal prices for other industries too, the Vietnam News Agency reported.

The price of coal dust sold to EVN has risen by 28-47 percent to VND520,000-VND648,000 ($27-34) a ton, which would cover 70 percent of the cost, up from 50-60 percent earlier.

But the proposed December price hike has come under fire since it is likely to trigger another power price hike.

EVN will earn an additional VND5.6 trillion ($293.5 million) from the recent 6.8 percent increase in power prices while for Vinacomin it would be VND1.28 trillion ($76 million), Lao Dong newspaper quoted Hai as saying.

Tags: Vietnam Coal, Vietnam Coal price, Vietnam mining