HA NOI - The Viet Nam Coal and Mineral Industries Group (Vinacomin) has submitted a proposal to the Government to increase coal prices for the country's four largest coal consumers as of early next year.
In the wake of an instruction from the Prime Minister and the Ministry of Finance, coal prices sold to power, cement, fertiliser and paper producers will increase to match market price levels.
Vinacomin currently offers a large discount to the four sectors to meet a previous Government instruction designed to stabilise the local market.
Vinacomin estimated that the price currently offered to the four producers was equal to only roughly 60 per cent of its export prices, creating a coal industry loss of 27-33 per cent of its production costs. With coal provision for the power industry last year alone, Vinacomin said it had to offset a loss of roughly VND3 trillion (US$153.8 million).
Vinacomin said that the price adjustment was crucial to creating capital for reinvestment.Source: vnagency.com.vn
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