Coal demand to plummet

Coal is loaded at the Phan Me Mine in the northern province of Thai Nguyen. — VNA/VNS Photo Ha Thai

HA NOI — Coal consumption will reduce by 3 million tonnes on cut purchases this year, according to Nguyen Van Bien, deputy general director of Viet Nam Coal and Mineral Industries Group (Vinacomin).

Speaking at a conference here on Monday, Bien said that in the first six months of the year, the group's coal production remained stable at 26 million tonnes, increasing 1 per cent against last year.

However, only 20 millions tonnes had been consumed, a 10 per cent reduction over last year and just 44 per cent of the annual target. Of the total, 7.1 million tonnes were exported while 12.9 million tonnes were used to sate domestic demand.

Coal consumption amongst key industrial sectors was 50 per cent lower than targeted.

Bien said that by the end of this year, the coal inventory would have reached 8.5 million tonnes, 3.5 million more than the estimated level. Turnover would therefore be only VND44 trillion (US$2.09 billion), 46 per cent of the amount targeted.

He blamed decreasing consumption on economic slowdown, resulting in a high inventory and affecting production, jobs and salaries.

To cope with difficulties, the group would focus on reducing its inventory while trying to save 5 per cent in costs.

In addition, it would invest in technology and management to increase productivity and promote domestic consumption.

Vinacomin also plans to restructure its State-owned businesses and issue VND3 trillion ($143 million) in Government bond this year to mobilise capital for investment and development projects. — VNS