Cement firms advised to downgrade coal

October 22, 2010 | 09:12
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Cement plants should change their technology to use coal which is more available in Vietnam, advised an official from Vinacomin.
Vietnam’s coal output remains low to meet domestic demand

Deputy general director of Vinacomin (Vietnam National Coal - Mineral Industries Group) Nguyen Manh Hung said that currently, cement producers in Vietnam used high-quality coal dust which accounted for just 15 per cent and 16 per cent of the total coal output of Vinacomin.

He said that cement plants should replace the current grade-3 coal dust with the lower-grade of 4b or 5.

“If Vinacomin’s coal output is less than 43 million this year, it may fail to provide 6.2 tonnes of coal for the Vietnam Cement Industry Corporation (Vicem),” affirmed Vinacomin another deputy general director Le Minh Chuan.

Earlier, Vicem said that it was facing a serious shortage of coal. Each day, it needs up to 5,000 tonnes of grade 3 and 4 coal dust, but Vinacomin only meets half of the demand.

The shortfall affected operations of its affiliates, including Hoang Thach, But Son, Tam Diep, Hoang Mai, Hai Phong and Ha Tien, Vicem complained.

Responding to Vicem’s complaint, Vinacomin deputy general director Nguyen Manh Hung said, in the first nine months of this year, Vinacomin supplied 4 million tonnes of coal for Vicem, or 64.8 per cent of the set full-year target.

The modest figure is attributed to Vinacomin’s low output of grade 3 and 4 coal dust, Hung said, noting that his group had to halt coal supply for many cement firms which did not make payments on time in September.

Due to the limited supply, cement companies should negotiate and sign contracts with the group before carrying out their new projects. Cement producers were also advised to ink long term contracts with Vinacomin at a time that Vietnam may have to import coal in 2015.


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