Home » Business, Trade » Vinacomin to export coal to South Africa, Cuba

The VVinacomin to export coal to South Africa, Cubaietnam National Coal, Mineral Industries Holding Group (Vinacomin) will export approximately 25,000 tonnes of coal to South Africa next month while planning to ship an additional of 18,000 tonnes to Cuba in November.

The group has recently asked its afiliates including Cuu Ong Coal Preparation Co, Dong Bac Corp and Uong Bi, Nam Mau and Hon Gai coal companies to ensure efficient coal resources to meet these two export plans.

Earlier, Vinacomin official website quoted Nguyen Xuan Minh, head of the group’s commercial department as saying that the group’s coal exports showed an recovery signal this month as it has won contracts to ship 3 million tonnes coal abroad.

Of the total, Chinese counterparts buy 2 million tonnes.

In the first half of 2012, Vinacomin exported nearly 7 million tonnes of coal. However, in July alone, the group exported only 300,000 tonnes of coal.

As of last month, its coal stockpiles had reached 10.5 million tonnes due to difficulties it had encountered in both domestic and international markets.

Vinacomin has recently petitioned the Government to reduce the coal export tax from 20 to 10 percent this year to help the corporation avoid further losses, said its deputy general director of Vinacomin Nguyen Van Bien.

Despite this, Vinacomin had incurred losses of 8 trillion VND (380 million USD) every year on average for several years, because it sells coal for power production at below market prices under a Government subsidy programme.-VNA

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