ITA GROUP considers importing Russian coal

ITA Group‘s leaders accompanied State President Nguyen Minh Triet on October 26 during an official visit to the Federal Republic of Russia and Mongolia.

The ITA Group so far has not engaged in any economic cooperation with Russian companies, however, on this occasion, the Group desired to seek potential Russian partners to sign long-term coal importation agreements aimed at supplying coal for the Kien Luong power plant, the largest thermal power plant to be built in Vietnam, the ITA Group ‘s Vice-president Dang Quang Hanh said.

According to Vice-president Hanh, the Kien Luong thermal power plant is projected to consume at least 3 million tons of coal per year in the first development phase and about 12 million tons per year upon full operation.

Just a few days ago, in an accompanying trip with Prime Minister Nguyen Tan Dung to Australia, the ITA GROUP discussed a wide range of investment opportunities with Australian companies in various fields composed of coal supply.

Mr. Hanh added that the Vietnam Coal and Mineral Corporation and the Electric Vietnam Corporation of late signed a coal import contract of 3,5 million ton per year with Indonesia because Vietnam‘s coal demand is expected to surge to 40 million tons per year by 2020.

“ITA Group will cooperate with Russian enterprises in various fields, particularly coal industry in upcoming years. This broad cooperation will make significant contribution to the national development”, Mr. Hanh underlined.

The Vietnamese State President Nguyen Minh Triet pays an official visit to Russia on October 26, 2008 (Picture: Pham Mien)

Vietnam‘s renovation process and economic reforms in Russia have further strengthen bilateral economic and commercial relationship between the two countries. The two-way trade volume exceeded USD 1 billion for the first time in 2005, including USD 251.8 million in export and in 768 million in import.

The Vietnam-Russian cooperation has strongly developed in industrial sectors comprising of petroleum, energy, coal, the chemical industry and steel for the past years. In particular, the outstanding cooperation in petroleum exploitation is featured by the foundation of Vietsovpetrol Joint Venture and numerous economic contracts of equipment supply, research cooperation, joint ventures establishment in mechanics and coal exploitation.

Russia has invested and supplied equipments and technologies for the construction of many hydropower plants comprised of Hoa Binh, Thac Mo, Tri An, Ialy, and Dak Mil in Vietnam. The Russia- based Power Machines Corp. has supplied equipments and technologies to build Uong Bi and Pha Lai thermal power plants. The Vietnam Coal & Mineral Corporation has signed also contracts of equipment supply and coal and mineral research cooperation with the Russian coal industrial corporation.

The strong industrial cooperation between Vietnam and Russian has been featured with numerous lucrative projects. However, most of the projects concentrate on petroleum and coal.

Russia currently invests 55 projects in Vietnam with USD 300 million in total.

In November 2007, 100 Russian companies composed of 50 large corporations made the first time visit to seek investment opportunities in Vietnam.

Recently, the Vietnam-Russia Business Council has also been set up to further bolster the economic cooperation between two countries. Vietnam is currently investing 11 projects in Russia with a total capital of USD 33 million in garment, food processing and construction material production.

Viet Thang (Translated by)