Coal import for thermo power plants

The local coal using demand for thermo power plants has surpassed domestic supply that may led to lack of coal for thermo – electricity in the near future. Thus, the local firms should start looking for foreign coal sources.

Formerly, finding a foreign coal supplier was difficult. However, now Vietnam could source coal from Russia, a feasible market for the import by buying stakes in mines or purchasing the right to mine or buy coal from the country, said Nguyen Manh Quan, a member of the committee and the head of the Heavy Industry Department.

The price of imported coal increased to $120 per tonne from $70. In addition, no investors, including the Electricity of Vietnam were interested in the plan because the imported coal costs were higher than that of domestic

Although the Vietnam National Coal and Mineral Industries Group (Vinacomin) was tasked as import coal firm but no investors had discussed the issue yet, Tran Chien Thang, deputy general director of Vinacomin, said.

Up to this time, Vinacomin inked 15 memorandums in principle with coal suppliers because there are no detailed figures from its customers to send to its suppliers.

Investors, especially State – owned ones preferred local sources because costs were partly subsidised by the government, Quan added.

The Electricity of Vietnam (EVN) also did not want to use imported coal instead of domestic ones because of much higher cost.

Meanwhile big coal firms kept hesitating, a private one signed an agreement for buying coal for 20 years with a foreign supplier and were willing to import more to supply other companies, said Ta Van Huong, director of Energy Department.

An Vien Group and Vincom Group suggested to the Ministry that they could help local firm source coal from Russia. However, the field’s experts wondered that whether many firms should participated in the coal import because that might lead the competition.

However, Huong affirmed that more firms could enter the import business as long as they followed the government rules.

The government would set up a legal framework to regulate local coal importers as well as avoiding conflicts among them. – TBKTVN

Tags: Vietnam Coal imports