State-owned mining giant Vinacomin Group plans to reduce coal miningthis year in order to maintain reserves for national energy security,says Vinacomin general director Tran Xuan Hoa.
The grouphad targeted to exploit 44 million tonnes of coal this year, 2.8 milliontonnes lower than in 2010, Hoa said. This target would allow revenuesfrom coal exports to still post a 10-percent increase this year due tohigher prices, he added.
To further enable greaterreserves of dwindling domestic coal supplies, Vinacomin would also focuson mining high-quality, high-value coal for export, while importinglower-value coal for domestic electrical, cement, fertiliser and paperproduction, he said.
Last November, Vinacomin sought theGovernment's approval to increase coal prices for these four leadingcoal consumers to levels only 10 percent lower than export prices. ThePrime Minister and the Ministry of Finance issued an instruction thatprices of coal sold to these sectors should increase gradually untilconsistent with market prices.
Hoa said he expected theState to soon undertake a further measures for the domestic coal marketthat would allow all prices to be set by market forces. Meanwhile, aseparate plan to increase coal prices for electricity producers would becarried out in two phases. In early 2011, prices would be set based onthe 2010 production costs. Then, in the fourth quarter of this year,coal prices for power plants would be set at the same levels applied toother major consumers./.
The grouphad targeted to exploit 44 million tonnes of coal this year, 2.8 milliontonnes lower than in 2010, Hoa said. This target would allow revenuesfrom coal exports to still post a 10-percent increase this year due tohigher prices, he added.
To further enable greaterreserves of dwindling domestic coal supplies, Vinacomin would also focuson mining high-quality, high-value coal for export, while importinglower-value coal for domestic electrical, cement, fertiliser and paperproduction, he said.
Last November, Vinacomin sought theGovernment's approval to increase coal prices for these four leadingcoal consumers to levels only 10 percent lower than export prices. ThePrime Minister and the Ministry of Finance issued an instruction thatprices of coal sold to these sectors should increase gradually untilconsistent with market prices.
Hoa said he expected theState to soon undertake a further measures for the domestic coal marketthat would allow all prices to be set by market forces. Meanwhile, aseparate plan to increase coal prices for electricity producers would becarried out in two phases. In early 2011, prices would be set based onthe 2010 production costs. Then, in the fourth quarter of this year,coal prices for power plants would be set at the same levels applied toother major consumers./.
