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Trade ministry proposes exporting 1.5 million tons of coal
Tuesday,  1/19/2021, 16:33 

Trade ministry proposes exporting 1.5 million tons of coal

The Saigon Times

Piles of coal dust at a mining site in northern Vietnam. The Ministry of Industry and Trade has written to the prime minister proposing exporting over 1.5 million tons of coal – PHOTO: VNA

HCMC – The Ministry of Industry and Trade has written to the prime minister proposing allowing the Vietnam National Coal and Mineral Industries Group (TKV) and Dong Bac Corporation to export over 1.5 million tons of coal.

Under the ministry’s proposal, TKV will ship 1.5 million tons of coal to foreign markets, while Dong Bac Corporation will export 50,000 tons. Of the total, coal dust of types 1, 2 and 3 will account for over one million tons, Thanh Nien Online reported.

The proposed volume of outbound coal sales is equivalent to the volume for the power generation of a thermal power plant with a capacity of less than 600 MW, making up over 1% of the country’s estimated total power capacity in 2021, according to the ministry.

Besides, the use of coal dust for power generation might cause wastefulness and not contribute to raising the value of using coal resources.

Assessing the benefits of outbound coal shipments, the ministry said the export price of Vietnamese coal dust in 2021 is expected to stay at US$121 or VND2.8 million per ton of coal dust type 1 and at VND2.7 million and VND2.49 million per ton of coal dust types 2 and 3, respectively.

A report by TKV showed that in late September last year, the firm planned to sell coal dust of types 1, 2 and 3 to domestic households in 2021 at VND2.6 million, VND2.5 million and VND2.44 million per ton, respectively.

As such, the value of outbound sales will be VND50,000-VND210,000 per ton higher than the earnings from domestic consumption.

The proposed volume of coal export in 2021 is much lower than the volume approved by the Government last year, according to statistics from the two firms.

In 2020, TKV was allowed to export two million tons of coal, while Dong Bac Corporation got the nod for shipping 50,000 tons of the product to foreign markets. However, the combined volume of coal shipments met a mere 34% of the plan, equivalent to 714,000 tons, due to the falling demand for coal from some traditional markets such as Japan, India and South Korea.

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