Vinacomin, or the Vietnam National Coal and Mineral Industries Corporation, yesterday held a bond investor meeting in a bid to sell its domestic bonds to raise VND3 trillion (US$144 million) for its investment and development plans.
The state-run coal and minerals giant said its key duty in the future is to exploit coal and bauxite, and process aluminum, metallurgy, and generate power at high production rates to meet the increasing demand of the national economy.
“Hence, Vinacomin needs to mobilise capital from various sources to ensure it meets the development demands, and is expected to issue bonds worth VND3 trillion this year,” it said.
Vincomin CEO Le Minh Chuan said the first batch of alumina product from the Tan Rai bauxite plant will be completed this August, and the plant will become operational next January.
“The products are expected to be sold mostly to China’s Chalco Group, and Marubeni of Japan,” said Chuan.
Previously, Vinacomin came under public scrutiny following its demand to export coal to maintain capital for operation and investment, despite the country’s expected need to import coal by 2015.
The company also said in a recent meeting that it cannot afford the coal supply for the power sector, adding that the country may face power shortages in 2015 due to a short supply of coal.
Meanwhile, the Ministry of Finance is collecting feedback from relevant ministries and agencies to reduce the export duty on coal, currently standing at 20 percent, to assist the company, saying it is facing financial troubles.