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Vinacomin outlines ambitious end of year coal export target

Update: October, 23/2013 - 09:02
The Viet Nam Coal and Mineral Industries Group (Vinacomin) plans to export 11.9 million tonnes of coal this year, said Vinacomin Deputy Director General Nguyen Van Bien.— File Photo

HA NOI (VNS)— The Viet Nam Coal and Mineral Industries Group (Vinacomin) plans to export 11.9 million tonnes of coal this year, said Vinacomin Deputy Director General Nguyen Van Bien.

At a press conference in Ha Noi on Monday, he said the group exported 8.4 million tonnes in the first nine months and aims to export 3.5 million in the fourth quarter.

Domestic demand for coal used in thermo-electricity power plants was expected to surge in the dry season, while the coal export tax, which was reduced to 10 per cent from 13 per cent in the first half of the year, helped improve exports.

The group's coal sales in the third quarter met only 15.6 per cent of the annual target, decreasing 40 per cent due to reductions in domestic coal consumption and export price.

In the January-September period, Vinacomin earned a turnover of VND68.6 trillion (US$3.26 billion) and estimated profits of VND1.5 trillion ($70.5 million).

This year, the group aims to sell more than 39 million tonnes of coal, equivalent to last year's figure.

By the end of last month, the group's coal inventory was 7.8 million tonnes, including 5.6 million tonnes of clean coal – down 900,000 tonnes against the same period last year.

Decreasing coal consumption in the third quarter made workers' lives harder, Bien said.

The average monthly salary was VND7.2 million ($342) per person, 95 per cent of the whole year's target.

The group's investment value in the nine-month period reached VND12.6 trillion ($600 million), 66 per cent of the annual target and 18 per cent more than the corresponding period last year.

The group focused on arranging capital for its main sectors: coal, minerals, electricity and industrial detonation materials.

Last month, Vinacomin successfully issued domestic bonds worth VND5 trillion ($238 million) in five years for bauxite aluminum and coal projects.

Non-core investments

The deputy general director said Vinacomin invested VND500 billion ($23.8 million) in non-core businesses such as banking, insurance and stock, accounting for 1.5 per cent of its equity capital.

Investment in the banking sector accounted for VND300 billion ($14.28 million) while VND70 billion ($3.3 million) was invested in stocks and VND130 billion ($6.19 million) in insurance.

Non-core businesses were listed in the stock market; Vinacomin planned to divest from the businesses based on matching prices on the market. The group would choose a suitable time to sell the shares before 2015 as the prices were still low.

Vinacomin has implemented equitisation at three enterprises: Vinacomin – Material, Transport and Stevedoring Company, Thai Nguyen Nonferrous Metal Company and Technology Development and Mining Equipment Company.

The companies planned to sell shares this quarter and become joint stock companies by the beginning of next year.

As for Electricity of Viet Nam's debt, Vinacomin had collected VND2 trillion ($95.2 million), the deputy general director said, but added that this was not a major issue as the debt was resolved months ago. — VNS

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