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Vietnam coal and mineral industry recover from misfortune

Vietnam coal and mineral industry recover from misfortune

Thursday 05, 12 2019
As coal price and demand have recovered, Vietnam National Coal - Mineral Industries Group(Vinacomin) and its members have formulated 2017 business plans for development.

As coal price and demand have recovered, Vietnam National Coal - Mineral Industries Group(Vinacomin) and its members have formulated 2017 business plans for development.

According to Le Minh Chuan, Chairman of the Board Directors of Vinacomin, coal price recovery took place in Q3, 2016 and has been stable in 2017. This is a good chance for the coal industry to recover after 10 continuous years of coal price decreasing.

“The coal industry has the opportunity to increase output, to improve business efficiency and to meet the demand of coal, especially for power sector. This year, with the goal of 6.7% GDP growth, the demand for coal for domestic manufacturing is also expected to increase. The Group's target is to increase mining production from 5-10% compared to 2016.

Accordingly, Vinacomin aims to achieve revenue of VND 106,800 billion, 6% higher than that of 2016; profit is expected to be VND 1000 billion (VND 800 billion higher than 2016). Profit target of over 1,000 billion, according to Mr Bien, is calculated on the basis of cautious forecasts about the coal price trend.

To take full advantage of the coal price recovery, the group has contracted with its members to implement the business plan in 2017.

In terms of minerals, Lam Dong Bauxite - Aluminium project also give some positive signals when alumina prices in the global market have rebounded and remain above USD340/ton.With this price, Lam Dong Bauxite - Aluminium is expected to generate a profit of VND 100 billion in 2017.

The Board of Directors of Hon Gai Coal Company has informed that in 2007, the company set a target of tons 2.35 million of coal production, tons 2,217 million of consumption, 17 971 meters of furnace dug, which are all higher than 2016.

Meanwhile Halong Coal Company has seen eye on eye with Vinacomin on meeting and exceeding the production and business target set with total turnover of VND 1928 billion, tons 1.8 billion of raw coal and tons 1.646 billion of consumed coal.

-Compiled by VietnamCredit-

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Financial News

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