Coal price for power generation rises by a maximum 47pct

Plans for increasing coal prices for power generation have been approved by the Government after a proposal by the Vietnam National Coal and Mineral Industries Group (Vinacomin).

This was announced by Mr. Nguyen Van Hai, Deputy Director of Vinacomin, in a press briefing on March 3rd.

Mr. Hai said that after a working meeting between Vinacomin and the Vietnam Electricity Group (EVN) on February 27th, the two sides agreed on a new coal selling price from Vinacomin for producers. The new price was approved by the Government and applied from March 1st, 2010.

Four types of coal with prices raised by Vinacomin for power generation include: coal dust 4b by 47% to VND648,000 a tonne, coal dust 5b by 28% to VND520,000 a tonne, coal dust 6a and 6b to VND450,000 and VND395,000 a tonne, respectively.

However, Mr. Hai also noted that although the adjustment was applied, coal prices for power generation are lower than that for cement, paper, and chemical production and are only 70% of that on the market.

The new price is nearly 50-60% of export price and nearly 70-80% of coal production price. Coal price for paper, cement and chemical production is also 70-80% of export price.

Mr. Hai commented on the possibility of Vietnam’s importing coal saying that that the country will most likely buy coal in 2013 and even import 10-20 million tonnes of coal for rush periods while negotiation and spending and paying foreign currency for imports are uneasy.

Currently, Vinacomin is considering a plan of tapping coal overseas in coordination with other partners to increase coal for domestic consumption, said Mr. Hai

Tags: Vietnam Coal, Vietnam Coal price, Vietnam Coal price for power generation, Vietnam mining

Posted by VBN on Mar 6 2010. Filed under Mining & Metal. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry