Coal output up but sales lag

The Viet Nam National Coal and Mineral Industries Group (Vinacomin) churned out 25.8 million tonnes of unprocessed coal in the first half of this year, up 15 per cent on last year’s figure.

The group also reported sales of 21.7 million tonnes of processed coal, an increase of 1 per cent against the same period last year.

Acting director general of Vinacomin Vu Manh Hung said the group had to minimise the negative impacts on production caused by power shortage and heavy rainfall to reach such a high output.

To mitigate the effects of power cuts, the group has shifted its focus to open-cast mines away from coal pits. Coal extraction in open-cast mines is less electricity-dependent. The group has also shifted to using machines and equipment that run on oil instead of electricity.

Hung attributed the poor sales to low consumption by a few major coal consumers in the paper and fertiliser industries, that have been slow to rebound from the economic crisis. Sluggish sales growth was also a result of delays to the operation of newly-built thermo-power plants, he added.

But while these factors pulled down local sales, the group managed to compensate by boosting its coal exports.

By the end of the year, the group is expected to exploit 47 million tonnes of unprocessed coal and sell another 23 million tonnes of the processed end products.

Vietnamnews

Tags: Vietnam Coal, Vietnam Coal output, Vietnam mining