Tan Tao Group to import Australian coal

Why does the Tan Tao Group decide to seek partners to import coal from Australia?

While our country is accelerating industrialization and modernization, there is a high increase in demand for energy. Thus, the Government has issued policies to encourage the construction of new power plants. Currently, Mekong Delta has 7 power plants built already or to be built, however, most are small power plants with slow construction progress. The energy problem is really still a challenge for the development of the Mekong Delta.

It is forecast, after 2015, Vietnam will have to import additional primary and atomic energy. Recently, the Tan Tao Group has been approved by the Government to build the country‘s largest thermal power plant in Kien Luong district, Kien Giang province. According to the planning on national electricity development approved by the Prime Minister, from now to 2015, Kien Luong will be one of the five coal-fired power centers to be developed in the Southern region aimed at meeting greater than ever demand of additional charge for the national electricity system. The Kien Luong thermal power plant will help to ease the current shortage of electricity in Vietnam.

The operation of the plants requires a stable sources of coal supply, thus, on accompanying Prime Minister Nguyen Tan Dung to Australia, we desire to seek Australian investors for the power plant project because Australia is known to be one of the countries possessing the world‘s largest coal reserves.

We have scheduled two working days with the Australian Minister of Environmental Resources in this peaceful country. Then, we will meet and exchange some investors. As a typical and reliable enterprise accompanying with the Governmental delegation, we want to find large investors capable of maintaining stable sources of coal supply to build the largest thermal power plant in Vietnam.

Our country has many coal mines, why doesn’t Tan Tao exploit domestic sources of coal, which will be more advantageous compared with foreign imported coal?

At present, the majority of coals in Quang Ninh primarily meet the demand of the Northern power plants. On the other hand, according to the State regulations, private enterprises are not allowed in exploitation. Additionally, Kien Luong Thermal Power Plant is projected to consume about 50 million tons of coal per year within a 30 years period. Therefore, it is essential to find partners to import coal from on long-term basis towards ensuring energy security of the country. In order to reduce transportation costs of importing coal, we are planning to invest and build the Nam Du port so that transporting foreign raw materials is not as difficult and costly as before.

This is the first time the Government permits a private enterprise to invest such large power plant. What do you think of this decision?

In recent years, the State has acknowledged the important role of private enterprises in the development of the country and, therefore, has paid more attention to them through opener policies aimed at creating a fair playing ground for all enterprises. This is an opportunity for Tan Tao to assert its position in the country as well as in a tough market during the integration process today.

Chairwoman of the Board of Management of the Tan Tao Group Dang Thi Hoang Yen (middle) and Vice-president of the Group take photograph at the Australian Congress Building

Coal reserves in Vietnam

Most explored coal reserves have been demonstrated in the diagram, comprising all coal types in Vietnam as follows:

- Anthracite, semi-anthracite coal and black coal: 3,367,688 million tons

- Fat coal: 7,495 million tons

- Low sulphur, high heating value coal (Na Duong coal mine): 97,141 million tons

- Low sulphur, high heating value coal (coal basin in Northern delta, only Binh Minh mine after preliminary exploration): 118,911 million tons

- Peat coal reserves across the country in exploration: 395,940 million tons.

Coal reserves are categorized into methods of exploitation as follows:

- Open-pit coal reserve: 330,186 million tons, accounting for 32 percent

- Underground coal reserve: 713,994 million tons, accounting for 68 percent

(Source: Fossil energy sources in Vietnam in the 21st century, Dr. Nguyen Thanh Son, Science and Technology Magazine, April, 2006)

Viet Thang (Translated by)