VietNamNet Bridge - The Ministry of Industry and Trade (MOIT) has asked for the government’s permission for the export of lump coal and dust coal in the 2016-2020 period.

The ministry, in a document sent to the government office last week, proposed to export coal because of high supply from domestic exploitation.

If the proposal is approved, Vietnam would export high-quality expensive coal products, while it would import low-quality products for domestic thermal power plants.

According to MOIT, Vietnam exploited 40.03 million tons in 2015, while the output is expected to reach 43.77 million this year, 50.38 million tons by 2020 and 57.49 million tons by 2030. 

When comparing the estimated output and the demand, the ministry found that Vietnam had 3.5 million tons in excess in 2015 and 2 million tons in 2016 and proposed to export the excess output.

When comparing the estimated output and the demand, MOIT found that Vietnam had 3.5 million tons in excess in 2015 and 2 million tons in 2016 and proposed to export the excess output.

The plans by MOIT and MOF surprised the public because experts have repeatedly warned that Vietnam would lack coal for its thermal power plants in the near future.

Prior to that, agencies warned that Vietnam’s coal resources were declining and they would be depleted by 2025.

Nguyen Xuan Khien, former Head of the Institute of Geosciences and Mineral Resources, said coal not only can be found in Quang Ninh province, but also in Thai Nguyen province and the northwestern part of the country. 

However, the coal mines in the localities are very small. Therefore, to satisfy domestic demand, Vietnam will have to import coal.

In fact, Vietnam has been importing coal from Indonesia, mostly anthracite. In 1991, Vietnam signed a contract on allowing Indonesian investors to exploit coal in Uong Bi City, which had the best coal bed of the Quang Ninh mine.

The Indonesian investor’s coal exploitation in Quang Ninh province was once a hot topic of discussion in local newspapers, which commented that the Indonesian investor exported all the coal exploited, while the Vietnamese side could not get any benefit from the contract.

Commenting about the coal export plan suggested by MOF and MOIT, an expert said he fears the power plants in Vietnam would not have coal to run if Vietnam continues exporting coal.

Under the seventh program on the power generation network development by 2030, coal power plants would account for 51.6 percent of total plants.

“Half of the coal volume exploited should be reserved for the power industry, while the other half for other business fields,” he said.

“The current output is more than enough for power plants, but the coal shortage would occur in several more years,” he maintained. “Vietnam would run out of coal by 2025 if it continues exploiting coal at the current level.”

Dat Viet