A view of Formosa thermal power plant in the southern Dong Nai Province (Photo dantri.com.vn)
 
Hanoi (VNA) - Prime Minister Nguyen Xuan Phuc has allowed the Taiwanese Hung Nghiep Formosa Co Ltd (Formosa) to import coal for electricity production at its thermal power plant in the southern province of Dong Nai.

Earlier, Formosa sent a document to import coal itself for power generation of the Nhon Trach 3 Thermal Power Plant without going through two major Vietnamese importers - Vietnam National Coal-Mineral Industries Holding Corporation Limited (Vinacomin) and Dong Bac Coal Corporation.

It said that since 2001, it asked the Government for coal imports as it said the local coal is neither good enough nor compatible with the technology used at its thermal power plant.

Following Formosa, Vedan Vietnam Enterprise Corporation Limited (Vedan Vietnam) is the second 100 percent foreign-owned company that submitted a proposal to the PM, the MoIT, the Ministry of Finance, and the General Department of Vietnam Customs to import coal for electricity production in its coal-fired boiler without going through domestic intermediaries. However, the PM has yet to give directions regarding Vedan’s proposal.

The Government Office said the PM assigned the Ministry of Industry and Trade (MoIT) to require investors of thermal power plants, Electricity of Vietnam (EVN), Vietnam National Oil and Gas Group (PetroVietnam) and Vinacomin to calculate coal demand for electricity production at the moment and in the future to have specific plans to ensure sufficient materials for plants’ operation.

In addition, Vinacomin, Dong Bac Corporation and other businesses were granted licences for coal exploration and trading activities to calculate their coal supply abilities for thermal power plants and household consumption.

The MoIT will cooperate with the Ministry of Natural Resources and Environment, Vinacomin and relevant agencies to study coal resources in the Hồng (Red River) Coal Basin to ensure coal for electricity production in the future.

Vinacomin, Dong Bac Corporation and other units are required to build coal supply plans over the long-term to serve EVN’s thermal power plants.-VNA