Official Calls On Vinacomin To Sell Down Coal Stockpiles

HA NOI (VNS)— The Viet Nam National Coal and Mineral Industries Corporation (Vinacomin) was urged to take prompt measures to sell off remaining coal stocks from the beginning of this year.

The request was made by Deputy Prime Minister Hoang Trung Hai on Saturday after the corporation reported it had about 7.5 million tonnes of coal in stock by the end of last year.

"Vinacomin needs to be resolved in asking their customers to sign long-term contracts with the producers, which is crucial to the sector's future plan," Hai said.

He also asked the corporation to report to the Government any cases where clients refused to make long-time commitments.

Vinacomin made a profit of VND2.5 trillion (US$120 million) from producing 44.5 million tonnes last year, slightly higher than initial plan, but only accounting for 92 per cent of 2011's total production.

Hai said the Government was considering restructuring the corporation with a greater focus on its major businesses.

But Vinacomin should increase its management capacity and review economic targets in comparision with regional countries for sustainable development.

He also asked the sector to take heed of labour safety, where the individual responsibilities of directors of each unit should be clearly defined.

According to Vinacomin General Director Le Minh Chuan, due to economic difficulties, the corporation had managed to economise 5 per cent of expenditure from the earlier plan, achieving savings of VND1.7 trillion ($817,000).

The corporation had also been proactive in revamping operation of its businesses. It had divested some minor businesses, including one related to a road highway worth VND9.5 billion and an insurance arm worth VND50 billion.

Vinacomin plans to consume 43 million tonnes of coal this year, an increase of 3.7 million tonnes from last year; and keep maintain profits gained in 2012.

Measures laid out include market-oriented production and discount policies for new customers, as well as improving the operation efficiency of sales channels. — VNS