VIETNAM NATIONAL COAL-MINERAL INDUSTRIES. Dr. Trần Xuân Hòa CEO OF VINACOMIN

Transcription

1 VIETNAM NATIONAL COAL-MINERAL INDUSTRIES HOLDING CORPORATION LTD. COAL EXPORT AND THE FUTURE IN VIETNAM Dr. Trần Xuân Hòa CEO OF VINACOMIN 1

2 Brief Introduction to VINACOMIN Vietnam National Coal-Mineral Industries Holding Corporation Ltd. was established on December 26, 2005 by virtue of Decision No.345/2005/TTg It is one of 11 largest economic group companies in Vietnam, being a state-owned one-member limited liability holding corporation, playing an important role in the government s strategy to ensure efficient and effective exploitation of mineral wealth. As a group it comprises of 100 companies, of which 54 subsidiaries wholly owned by VINACOMIN and 46 JSC (equity of 51% and above: 33 companies, equity below 51%: 13 companies; ). It has the chartered capital of US$ 467 million; shareholders equity: US$ 974 million; and revenues of US$ 3,26 billion in It is the dominant coal producer in Vietnam managing over 95% of total coal activities, supplying anthracite and lignite for power generation and industrial uses both domestically and globally; It is employing a labor force of 122,600 people. 2

3 1. Current state VINACOMIN operates 54 coal mines with total current capacity of 46mn.t/year It has 5 big opencast mines with capacity more than 2 mn.t/year, 15 open pits with annual capacity from 100 to 700 thousand tons each and some smaller coal mining sites with capacity below 100 thousand t/year. Coal produced from opencast mines comprises main part of coal production, accounting for 55 60% of the total volume, stripping ratio is about 8.5 m 3 /t. There are 30 underground coal mines, of which 9 mines have output of more than 1.0 million tons/year, others have annual capacity less than 1 mn.t. There exist smaller mines that have no chance for introduction of mechanized mining technology. The 3 washing plants are: Hòn Gai (2,0 mn.t/year); Cửa Ông (10,0 mn.t/year) and Vàng Danh (3,0 mn.t/year). Total raw coal exploitation in the period is 177 million tons, last year mn.t of raw coal, equivalent to mn.t of salable coal, were extracted. 3

4 Coal exploitation in period Indicators Unit * 1 Raw coal mn.t In which: Opencast mn.t Underground mn.t Ratio of opencast output % Overburden removal mn m Stripping ratio m 3 /t Drivage volume 10 3 m Drivage per 10 3 tof coal m/10 3 t Salable coal quantity mn.t Export mn.t

5 Overview of Export Sales 2009 Exports Volume by Country (> 30 countries) Western Europe Korea Japan China 81% Japan 5% Korea 4% Europe 5% Others 5% China Thailand Brazil Exports (Million Tonne) ,6 24,1 24,3 17,3 14,7 10,5 6,

6 Coal for Power, Export and others ons Million t Export Others Power Source: Vinacomin 66

7 Type of Coal For Export mnton m.n.ton Type Aver. Lump Coal Fines 6-9a Fines 9b Low quality Total Japan Korea EU China Others

8 2. Vietnam Coal Resource Potential Total coal resources as of 1 st Jan, 2010: 49.8 billion tons Identified resources: 7.6 billion tons, in which measured & indicated reserves (categories A+B+C 1 ) account for 33%; inferred (C 2 ) 39% & prognostic resources (P):28%. Prognostic coal resources: 42.2 billion tons, in which + in Quang Ninh coalfield : 4.3 billion tons (anthracite); + in Red River Delta coal basin (Hung Yen, Thai Binh): about 37.8 billion tons (sub-bituminous). Geological & mining conditions are complicated. Some fat coal deposits in the North and peat in Mekong river delta. 79% Categories of Resources 89% 5% 6% Types of Coal 1% 20% 0% A+B+C1 C2 P Anthracite Fat coal Sub-bitum Peat coal 8

9 3. Coal Demand Economy demand: Until 2015: based on Power Development Master Plan Period : 2020: increase 5.5%/year 5%/year Period : increase 4.1%/year Power demand: d Until 2015: based on updated information on power projects Period : increase 10.7%/year Period : increase 7.6%/year 9

10 Demand for coal quality and coal types Coal for power are commonly bituminous, lignite, peat, but not anthracite. In China bituminous, washery waste and slurry are used for power generation. Consumption in Vietnam: lump No.2b for production of chemicals, fertilizer; fines No.8 for cement; fines No.9b and 10, for power, fertilizer; fines No.11 for construction materials;finesno No.12 (local standard) for power plants using low quality coal: Hai Phong, Quang Ninh, Cam Pha plants. As statistics for 3 years , coals (TCVN or Vietnamese standard) comprise of 88%, in which, lump coal: 6%, fines of higher grade (fines No.7, 8, 9a): 18%, fines of medium grade (fines No.9b, 10, 11): 60% and coal of low quality (local standard): 12%. Domestic anthracite for power generation is at maximum about 60% of total. 10

11 Coal supply/demand balance in base scenario (million tons) Year Total coal supply Total coal demand Other demand Coal for power Domestic Imported (min/max) Source: Energy Institute, Ministry of Industry and Trade 11

12 4. Prospect to development of Vietnam coal industry Production Targets in Master Plan for Coal (Salable Coal) (Excluding coal from Red River delta basin) 2010: 45 million tons 2015: 58 million tons 2020: 70 million tons 2025: 85 million tons 2030: 90 million tons 12

13 Master plan of coal, million tons TT Coal Area Total raw coal I North East Basin A VINACOMIN Uông Bí area Hòn Gai area CẩmPhả area B New coal mines II Inland III Outside Vinacomin IV Red River Delta basin Salable Coal

14 Plan for development of coal mines Mines to be closed in period : 19 mines with capacity 11 mn.t/y, in which: 9 open-cut coal mines with total capacity 8,2 m.n t/year: Nui Beo (3.5), Ha Tu (1.65), South west Đa Mai (1.0), East Đa Mai (0.4), Bang Nau (0.55), North west Khe Tam (0.03), Khe Sim (1.05), West Khe Sim (0.05); 10 smaller open-cut coal sites (2.7 mn.t/year); New coal mines to be constructed: 19 mines with capacity 61 mn.t/year, in which: 5 mines owned by Vinacomin in North East basin with capacity 13 mn.t/year; 9 new mines in North East basin with capacity 23.5 mn.t/year and 5 pilot mines in Hưng Yên, Thái Bình provinces of Red river delta basin with total t capacity 25 mn.t/year. Pilot UCG technology and conventional mining method projects. Mines to be maintained and upgraded: 25 mines owned by Vinacomin i with total capacity 50 mn.t/year; 68 local and peat coal sites with total capacity 10 mn.t/year; Until 2015: constructing 6 wahing plants (40mn.t/year): Khe Cham (15 mn.t/year); Mong Duong (2 mn.t/year); Lep My (6 mn.t/year); Ha Lam (10 mn.t/year); Vang Danh 2 (3,5 mn.t/year); Khe Than 1 (4 mn.t/year). Between : constructing washing plant Khe Than 2 or Bao Dai (12 mn.t/year); Đong Trieu-Pha Lai (10 mn.t/year) with 4 coal mines in the area. 14

15 To ensure National Energy Security VINACOMIN to cooperate with investors and foreign partners to: Enhance geological exploration, explore new mining areas & Red River Delta coal basin. Invest in & construct new big underground coal mines; increase capacity of the existing mines. Enhance mechanization in underground coal mines; Plan and construct infrastructure in mining areas (centralization of washing plants with modern processing lines, transport system and loading ports). Select suitable technology (coal gasification, conventional mining method, ) in Red River Delta coal basin. Construct a terminal for coal import in the Southern part of Vietnam Co-invest in foreign coal mines to ensure imported coal source; Develop human resources for mining activities. 15

16 Conclusions Coal demand increases very much, while infrastructure, technology and management skills are limited; Vinacomin is a multi-business enterprise, leading in coal industry of Vietnam and presently implementing large projects (exploration & exploitation o of anthracite in Quang Ninh and dof sub-bituminous b u coal in Red River Delta basin, infrastructure projects...); Vinacomin is ready to cooperate with organizations and institutions worldwide to develop coal industry in a sustainable manner, friendly to environment, with safety, making contribution to the economy development and stability in the region. It is necessary to establish a national commission i for importing i coal, to develop supporting law and policy for mobilizing investment fund from foreign capital markets (for buying coal mine, and investing in development of coal mines abroad and importing coal for power generation) 16

17 Thank you! 17