Along with PetroVietnam and Vietnam Electricity, Vietnam National Coal and Mineral Industries Holding Corporation Limited (Vinacomin) has been identified as a pillar in the national energy security strategy. With this mission in mind, Vinacomin has been focusing on reducing the amount of coal export, investing in new mines as well as providing coal for a reasonable price for big production sectors such as electricity and fertilizer. The amount of imported coal is expected to increase gradually over the next years and reach 18-20 million tonnes by 2020.Cutting down energy exports
Aiming for an efficient and economical exploitation, processing and use of the national coal resources, actively contributing to the guarantee of national energy security and satisfying the coal demand for socioeconomic development, the coal industry will start to reduce its export volume, exporting only types of coal that have no domestic demand.
Coal export will still be in place, but need to be conducted in a reasonable manner to maintain a balance, considering this is a finite resource. Accordingly, coal export will be decreased, only varieties that haven’t strong domestic demand can be exported and through careful planning and other regulatory measures consistent with the market mechanism with the state management as well as international institutions. Illegal coal export must be counteracted with a firm hand. As a result, the proportion of fuel and mineral resources in the export structure of the country will shrink significantly; resources and fuel in shortage will be replaced by commodities of high potential and having the advantage of green growth.
Period 2011-2015, mineral exploitation and business of Vinacomin and member units had been getting more and more challenging, as coal export fell sharply in both volume and price, plus the impact from financial crisis and economic downturn had decreased the efficiency of Vinacomin’s business. Moreover, as exploitation going deeper, the risks of water and air accidents, fire and explosion also went up, alongside with it were increased provision of transport, increased land coefficient; increased costs for exploration, drainage, ventilation, safety workwear and environment; increasing production costs due to new taxes or fees.
Apart from coal, Vinacomin also mines and manufactures many other kinds of minerals such as tin, zinc and copper. However, due to declining market demands and falling prices, many products couldn’t be exported or sold outside its localities; therefore, the group had to adjust to keep inventories manageable.
According to reports, mineral production of the five-year period from 2011 to 2015 accomplished only 50-60 percent of the goal, in which output of tin ingots was 4,276 /7,370 tonnes; Zinc ingots reached 44,700/ 85,000 tonnes; and copper sheet was 47,300/88,500 tonnes. Alumina production also did not reach its objective.
Sustainable development solutions
Accounting for about 95 percent of the total supply for the country, the coal industry is set to develop in a sustainable way, with a strategy of sustainable development for the industry of coal and mineral resources being finalised.
The coal and mineral resources industry will strengthen the work of resource governance, identifying resources as capital, linking it with investment strategies for sustainable business development. Additionally, the industry to experiment with “allocated” mineral reserves in mining business executive system to improve governance work, preventing loss and waste of coal and mineral resources.
Regarding the development of human resources, the group will be using the business philosophy of modern management model: which is keeping profit hand in hand with developing a team of loyalty and creative miners, who have opportunities for advancement. This is the key to Vinacomin’s productivity and sustainable development.
Vinacomin will restructure its management practices on the principle of creating the most favourable conditions allowing its member companies to pursue manufacture and trade proactively, considering this the ground to improve productivity. In parallel, continuing to improve the “socialization” solution in the model of public – private collaboration, to ensure the interests of the group while creating an efficient market of private capital. Besides, the group will continue to strengthen the “allocated” mechanism and the cost management using advanced technology – economic systems in combination with cost analysis methods in different geological and operation conditions, while taking into account the consistency in mining, transport and disposal, both in space and time, of mines in the area.
Coal export will still be in place, but need to be conducted in a reasonable manner to maintain a balance, considering this is a finite resource. Accordingly, coal export will be decreased, only varieties that haven’t strong domestic demand can be exported and through careful planning and other regulatory measures consistent with the market mechanism with the state management as well as international institutions. Illegal coal export must be counteracted with a firm hand. As a result, the proportion of fuel and mineral resources in the export structure of the country will shrink significantly; resources and fuel in shortage will be replaced by commodities of high potential and having the advantage of green growth.
Period 2011-2015, mineral exploitation and business of Vinacomin and member units had been getting more and more challenging, as coal export fell sharply in both volume and price, plus the impact from financial crisis and economic downturn had decreased the efficiency of Vinacomin’s business. Moreover, as exploitation going deeper, the risks of water and air accidents, fire and explosion also went up, alongside with it were increased provision of transport, increased land coefficient; increased costs for exploration, drainage, ventilation, safety workwear and environment; increasing production costs due to new taxes or fees.
Apart from coal, Vinacomin also mines and manufactures many other kinds of minerals such as tin, zinc and copper. However, due to declining market demands and falling prices, many products couldn’t be exported or sold outside its localities; therefore, the group had to adjust to keep inventories manageable.
According to reports, mineral production of the five-year period from 2011 to 2015 accomplished only 50-60 percent of the goal, in which output of tin ingots was 4,276 /7,370 tonnes; Zinc ingots reached 44,700/ 85,000 tonnes; and copper sheet was 47,300/88,500 tonnes. Alumina production also did not reach its objective.
Sustainable development solutions
Accounting for about 95 percent of the total supply for the country, the coal industry is set to develop in a sustainable way, with a strategy of sustainable development for the industry of coal and mineral resources being finalised.
The coal and mineral resources industry will strengthen the work of resource governance, identifying resources as capital, linking it with investment strategies for sustainable business development. Additionally, the industry to experiment with “allocated” mineral reserves in mining business executive system to improve governance work, preventing loss and waste of coal and mineral resources.
Regarding the development of human resources, the group will be using the business philosophy of modern management model: which is keeping profit hand in hand with developing a team of loyalty and creative miners, who have opportunities for advancement. This is the key to Vinacomin’s productivity and sustainable development.
Vinacomin will restructure its management practices on the principle of creating the most favourable conditions allowing its member companies to pursue manufacture and trade proactively, considering this the ground to improve productivity. In parallel, continuing to improve the “socialization” solution in the model of public – private collaboration, to ensure the interests of the group while creating an efficient market of private capital. Besides, the group will continue to strengthen the “allocated” mechanism and the cost management using advanced technology – economic systems in combination with cost analysis methods in different geological and operation conditions, while taking into account the consistency in mining, transport and disposal, both in space and time, of mines in the area.
Huong Ly/vietmaz.com
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