Inadequacies in coal production and trading everywhere

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Illustration. Source: Internet

Shortcomings exist from year to year

According to the draft reporting to the Prime Minister the results of inspection of coal production and trading activities in a number of provinces and cities in 2018, from the Ministry of Industry and Trade (including Quang Ninh, Hai Phong, Hai Duong, Lang Son, Bac Giang and Thai Nguyen): The management of coal production and trading activities in the provinces and cities has made positive changes. However, there were still many restrictions in coal production and trading in these localities.

Typically, in Quang Ninh province: There was an overlap between the boundaries of resource management of some units under the Vietnam National Coal and Mineral Industries Group (TKV), the Northeast Corporation and a number of Socio-economic development projects of Quang Ninh province (Waste treatment plant project in Trang Luong commune, Dong Trieu town; Project of concentrated cattle and poultry slaughtering area, lean pig breeding combined with aquaculture in Mong Duong ward ...), which caused difficulties for coal production of TKV and the Northeast Corporation.

In addition, a number of investment projects to explore, build new mines, renovate and expand existing mines of the coal industry in recent years (2016-2018) have not reached the progress requirement under the Proposed plan (The target of exploration drilling volume reached about 45.6% according to the plan, the annual output of exploited coal reached 80-85% ...).

In Hai Phong: The city has not issued regulations on arrangement of port and warehouses for coal trading (in 2016 and 2017, the Inspection Team proposed Hai Phong City People's Committee on this content); most of the coal gathering and processing yards had land records for wrong purposes. A number of coal gathering and processing yards did not have documents on environment, fire and explosion prevention and fighting approved by competent authorities according to the regulations.

In Hai Duong, according to the inspection and handling results of the authorities in Hai Duong province in 2018: Most of the coal business enterprises that were checked have not updated timely, do not fully understand the legal provisions on coal trading. Although the province had the Coal trading network plan, the inspection and control of local authorities at all levels was still limited; checking and handling violations at coal trading points which are outside the Coal trading network plan in the locality was weak, not strong enough or untreated, leading to the excessive development of spontaneous coal trading points…

The draft also stated clearly that in Lang Son province, there were 3 enterprises involved in coal production and trading activities. In 2018, the Market Management Department checked and handled 12 cases of illegal coal transportation; fined administrative violation of 261 million VND, confiscated about 0.4 tons of coal. The provincial police checked and handled 3 cases of illegal coal transportation; fined administrative violations of 24 million VND.

Notably, in Bac Giang, during this inspection, the Inspection team still noted that the province has not issued regulations on arrangement of ports and warehouses for coal trading (in 2016 and 2017, the Inspection Team proposed Bac Giang City People's Committee on this content). In addition, a number of enterprises that have been examined such as Minh Thang Bac Giang Import Export Joint Stock Company had not provided environmental protection documents; Bac Giang Mineral Joint Stock Company has not completed some legal procedures related to land lease ...

Similar to Bac Giang, in Thai Nguyen: The province has not yet issued regulations on arrangement of ports and warehouses for coal trading. Some coal mines licensed by the local authorities have not yet applied advanced technologies in coal mining and processing, so the production efficiency was not high, causing potential risks of adverse impacts on the environment…

Increase control

The cause of the above mentioned problems, subjectively, according to the Inspection team, was that the coordination between the provinces and cities in checking and exchanging information related to coal production and trading activities was not synchronous, regular and continuous.

Moreover, the arrangement and management of coal trading locations, the system of ports and warehouses was inadequate and incompatible, leading to over development and non-compliance with regulations of coal export terminals, coal storage yards (Hai Duong province) or the locality where there are coal trading activities, have not issued regulations on management of ports and warehouses for coal trading (Bac Giang Province, Thai Nguyen Province, Hai Phong City) ...

From an objective point of view, according to the Inspection team, the demand for domestic coal was complicated, not according to the forecast. At a time when the coal industry faced difficulties due to competition with imported coal, high inventories, the coal industry had to reduce investment and mining output to decrease inventories and ensure general production and business efficiency. In addition, illicit profits from illegal coal mining and trading activities was large; sanctions for illegal exploitation, processing, transportation and trading of coal were not strict enough...

In the context of increasing domestic demand for coal in the coming years, the price of coal will be adjusted according to market principles. To solve problems from the actual state management and mineral activities, the Ministry of Industry and Trade proposed to the Prime Minister to direct the Ministry of Natural Resources and Environment to develop and issue documents guiding the management and use of land in mineral exploitation; to protect unexploited minerals according to regulations; to accelerate the progress of granting mineral activity licenses to ensure that projects are put into production as planned.

In addition, the Ministry of Industry and Trade requested the Prime Minister to direct the Ministry of Finance to study and report to the Prime Minister to direct the flexible management of taxes and fees for coal minerals to be suitable with the specific situation in each period.

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With the People's Committees of the provinces and cities directly under the Central Government having coal mining and trading activities, the Ministry of Industry and Trade proposed the Prime Minister to direct and strengthen the inspection of coal exploitation and trading activities, to maintain regular control forces on traffic routes to detect and handle timely cases of illegal coal transportation and trading; to urgently complete the updating, adjusting or building new regulations on the arrangement of ports and warehouses for coal trading in the area under management...

Previously, on September 20, 2018, the Minister of Industry and Trade established an Inspection team for coal production and trading activities in a number of provinces and cities directly under the Central Government.