Vietnam: Vinacomin adjusts to reduce the output of some types of coal

Vietnam: Vinacomin adjusts to reduce the output of some types of coal

As the consumption of coal on the market is still stagnant, Vietnam National
Coal-Mineral Industries Holding Corporation Limited (Vinacomin) has directed
to review production situation of a number of its member units with coal
products that the market does not need to reduce the output. During the
reduction of production, the units will implement removing soil or digging
pits to be ready to exploit coal in more favorable conditions of
consumption.

This could be considered a flexible operating solution under market
mechanism of Vinacomin leadership. This solution is applied in difficult
condition of coal sale and it would be changed for stable production of the
member units when the coal market returns to normal situation.

Vinacomin informed that, in the last months of the year the group will
produce coal according to the monthly market demand, and strive to reduce
coal stock at least by 500,000 tons to reach the coal stock at a reasonable
level at the end of 2017 and less than 6 million tons in 2018.

At the same time, the group will also study the rational production
alternative with a guarantee of planed profit targets.

According to the plan approved by the Vinacomin Member Council, in 2018 the
group will sell 36 million tons of coal types, of which newly production is
36, 35 or 34 million tons dependently to market demand in order to reach a
stock level as 5-6 million tons.

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Link to Original Article:
http://nangluongvietnam.vn/news/en/coal-mineral/vinacomin-adjusts-to-reduce-
the-output-of-some-types-of-coal.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com