Vietnam state coalminer eyes tenders
HANOI - Vietnam plans to seek
more foreign participation in tapping the country's vast
coal reserves by launching its first international coal
mining tender next month, a senior official said.
Doan Van Kien, president and chief executive officer of
the state-run Vietnam National Coal Corporation
(Vinacoal), said foreign firms would be invited to submit
bids to exploit a mine in northern Quang Ninh province
for 20 years.
Kien said in an interview late on Friday that 15 foreign
companies had already expressed interest in the tender,
which would involve mining one million tonnes per year
and cost about $200 million over the life of the project.
``There are bright prospects for the coal industry in
Vietnam,'' Kien said.
He said there would probably be more international
tenders, although he gave no details.
Vinacoal was created in 1994 to oversee the industry
and now comprises 50 companies employing 70,000
people.
It also has some serious coal reserves under its belt.
Kien said the official figure of proven coal reserves in
Vietnam was 3.5 billion tonnes up to 300 metres (975
feet) below sea level, mainly in Quang Ninh but also
other northern provinces.
He said there were an estimated ``billions more tonnes''
of coal in Quang Ninh which had yet to be surveyed.
In addition, the northern Red River Basin, part of the
expansive Red River Delta, could hold up to 200 billion
tonnes, Kien said. Vinacoal planned to begin surveys of
reserves in the Red River Basin this year, he added.
When asked why there had been so little foreign
involvement in Vietnam's coal mining industry in recent
years, Kien said the mines in Quang Ninh were not very
big. The geological area was complex, he said.
Foreign firms have also cited mind-bending regulations.
Two Business Cooperation Contracts have been signed,
one in 1991 with an Indonesian company and another
more recently with Canadian firm Cavico International
Ltd. This sort of contract usually involves some form of
revenue sharing with the state.
Cavico has an agreement to extract one million tonnes
annually over 28 years at a mine in Quang Ninh. Kien
said if all went well, Cavico should bring in equipment by
the end of the year and begin exploitation early in 1999.
Kien said despite the regional crisis, Vinacoal would
make a profit this year. He declined to give an estimate
but said it would be less than the $10 million recorded in
1997.
He forecast Vietnam would sell a total of 11 million
tonnes of coal this year, nearly double the volume in
1994. Exports would comprise 3.2 million tonnes of the
total.
Kien said he expected to sell a combined 12 million
tonnes locally and abroad in 1999 and 13 million tonnes
in 2000.
``Our future should start looking very bright from 2001
because more power stations will be coming on stream
that will use coal,'' he said.
When asked if Vinacoal planned to sell stakes in its
firms, a process called equitisation of Vietnam's state-run
companies, Kien peppered his talk with the buzzwords
of market economics.
``I consider equitisation a solution not only to mobilise
capital but to make the enterprise more dynamic and
management more effective so the product will be
competitive,'' he said.
Kien said he aimed to sell stakes in four Vinacoal firms
early next year, adding he had also thought about making
Vinacoal a holding company that could one day list on an
eventual stock market in Vietnam.
By Dean Yates - Reuters - September 19, 1998.
|