Vietnam’s coal industry switches to investment mode

Its coal industry needs investments amounting to some US$15.1 billion to fulfill its development targets between now and 2020.

Vietnam confronts the need to rapidly grow its indigenous coal industry with a massive infusion of funds.

Its coal industry needs investments amounting to some US$15.1 billion to fulfill its development targets between now and 2020, said Nguyen Khac Tho, deputy director of the General Department of Energy. He said the funds will be raised through a number of options including capital infusions, loans and through the stock market.

The three-year period until 2015 will eat-up two-thirds of this amount for maintaining, upgrading and expanding production, and implementing new investments.

Tho said the industry plans to mine from 55 to 58 million tonnes of coal by 2015; from 60 to 65 million tonnes by 2020 and over 75 million tonnes by 2030.

As many as 47 new projects will be built in the Dong Bac (North East) coal basin by 2030. Twelve more coal processing plants will be built by this time. Production at peat mines and other coal mines in localities will be expanded.

"The country's demand for coal will increase significantly in the coming years," said Energy Department Director Pham Manh Thang. "The demand on coal power plants is very great."

Thang said the country will have about 46 operational coal power factories by 2020 that will burn about 77 million tonnes of coal per year. Of the yearly needed volume, Vietnam can supply 29 million tonnes from indigenous sources but will have to import 48 million tonnes.

Vietnam’s total national coal reserve was estimated to be 48.7 billion tonnes at the beginning of 22011.