Trade ministry proposes exporting 1.5 million tonnes of coal

21-Jan-2021 Intellasia | The Saigon Times | 6:02 AM Print This Post

The Ministry of Industry and Trade has written to the prime minister proposing allowing the Vietnam National Coal and Mineral Industries Group (TKV) and Dong Bac Corporation to export over 1.5 million tonnes of coal.

Under the ministry’s proposal, TKV will ship 1.5 million tonnes of coal to foreign markets, while Dong Bac Corporation will export 50,000 tonnes. Of the total, coal dust of types 1, 2 and 3 will account for over one million tonnes, Thanh Nien Online reported.

The proposed volume of outbound coal sales is equivalent to the volume for the power generation of a thermal power plant with a capacity of less than 600 MW, making up over 1 percent of the country’s estimated total power capacity in 2021, according to the ministry.

Besides, the use of coal dust for power generation might cause wastefulness and not contribute to raising the value of using coal resources.

Assessing the benefits of outbound coal shipments, the ministry said the export price of Vietnamese coal dust in 2021 is expected to stay at $121 or VND2.8 million per tonne of coal dust type 1 and at VND2.7 million and VND2.49 million per tonne of coal dust types 2 and 3, respectively.

A report by TKV showed that in late September last year, the firm planned to sell coal dust of types 1, 2 and 3 to domestic households in 2021 at VND2.6 million, VND2.5 million and VND2.44 million per tonne, respectively.

As such, the value of outbound sales will be VND50,000-VND210,000 per tonne higher than the earnings from domestic consumption.

The proposed volume of coal export in 2021 is much lower than the volume approved by the government last year, according to statistics from the two firms.

In 2020, TKV was allowed to export two million tonnes of coal, while Dong Bac Corporation got the nod for shipping 50,000 tonnes of the product to foreign markets. However, the combined volume of coal shipments met a mere 34 percent of the plan, equivalent to 714,000 tonnes, due to the falling demand for coal from some traditional markets such as Japan, India and South Korea.

https://english.thesaigontimes.vn/80249/trade-ministry-proposes-exporting-15 million-tonnes-of-coal.html

 

Category: Economy, Vietnam

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