Coal industry aims to increase production in H2

Coal industry aims to increase production in H2

The Vietnam National Coal Mineral Industries Group (Vinacomin) has adjusted this years’ coal production and consumption plans as domestic coal consumption in the second half of 2014 is expected to rise, the Vietnam Economic News reported.

The group set a target to increase the clean coal output by one million tonnes to over 35 million tonnes and coal consumption to 35.5 million tonnes, up 500,000 tonnes.

Vinacomin’s reports showed that the group turnover from coal and electricity production in the first half of this year (H1) was approximately 55.3 trillion VND, representing 52 percent of the years’ plan and 18 percent year-on-year increase. The group also guaranteed jobs for 126,000 laborers.

Vinacomin’s General Director Le Minh Chuan said coal consumption in H1 of the group reached 18.6 million tonnes, equal to 54.1 percent of the years’ plan, including 3.9 million tonnes of exported coal and 14.7 million tonnes of domestic consumption. Coal inventory level until the end of June was 7.5 million tonnes, down one million tonne compared with early this year.

Some member companies of the group have made significant contributions to Vinacomin’s growth during the period such as the Underground Mine Construction Company II and Mong Duong Coal Joint Stock Company.

Le Minh Chuan said in H2, Vinacomin strives to increase turnover by five percent, implement technological innovation to improve capacity, reduce product prices and increase wages for workers from 5-10 percent. The group has also adjusted coal exploitation up one million tonne and coal consumption up 500,000 tonnes compared with the earlier plan, including domestic consumption of 28 million tonnes and export of 7.5 million tonnes.

It is expected that in H2, the domestic coal consumption will not see sudden changes. However, with the recovery of construction material market, notably the operation of five cement plants at capacity of 8.1 million tonnes, there will be more opportunities for coal consumption in the coming period.

At the Vinacomin’s conference to sum up its production and business activities in H1 and task implementation in H2, Minister of Industry and Trade Vu Huy Hoang stressed: “The coal industry has to keep making efforts, resolving difficulties to complete its set targets as the coal industry could affect other sectors such as building materials, fertilizers and people’s daily activities.” He also asked the group to accelerate its restructuring and focus on its core businesses.-VNA

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