Proposing a special mechanism for the Vietnam Coal and Mineral Industry Group.

(Chinhphu.vn) - The Ministry of Finance is drafting a Decree stipulating the specific operating and financial management mechanisms for the Vietnam Coal and Mineral Industry Group (TKV).

The Ministry of Finance has proposed new regulations on the operational mechanism and specific financial management mechanism for the Vietnam Coal and Mineral Industry Group.

Specific characteristics of TKV's resource management, exploration, exploitation, processing, and utilization activities.

According to the draft, TKV is entrusted by the State with the management, exploration, exploitation, processing, and utilization of coal, bauxite, and other strategic and important mineral resources as prescribed by law; and some infrastructure projects of an inter-mine and inter-regional nature.

TKV plays a central role in leading, managing, and controlling the exploration, exploitation, processing, and utilization of resources by its subsidiaries in accordance with the law, this Decree, and the TKV Charter, aiming to achieve the highest business efficiency for the TKV Group and ensure the efficient exploitation and utilization of the country's mineral resources.

Unifying the management of mineral resources within the TKV Group of companies:

For mineral mines licensed to TKV, TKV is responsible for the unified management of all stages from surveying, exploration, mining, processing to product consumption. TKV has the right to contract its member enterprises to conduct mining operations in accordance with the law through contracts. TKV is the main distributor of post-mining products from mineral mines licensed to TKV.

For mineral mines licensed to its subsidiaries, TKV acts as the central coordinating body managing all stages from surveying, exploration, mining, processing to product consumption through contracts with participating subsidiaries in a coordinated business plan as stipulated by law, in order to unify the management of resources and mining and processing technologies.

Specific characteristics of TKV's business

Searching for domestic and foreign markets and customers, and signing contracts. Managing the unified consumption of coal, alumina, and several other important minerals and markets within the TKV Group of companies through the following mechanism:

TKV, in coordination with its subsidiaries and market-participating enterprises within the TKV Group, will agree on and unify the assignment of market management responsibilities within the TKV Group to ensure the development of the Group's internal economic strengths and create favorable conditions for domestic enterprises to develop (including the mechanical engineering market, strategic materials market, geological services, and environmental services).

TKV independently determines and adjusts the prices of goods and services (including purchase and sale prices within the TKV Group's corporate market), except for goods and services whose prices are specifically set by the State.

The parent company - TKV, and its subsidiaries participating in the business coordination plan must comply with current legal regulations, cover their own expenses, and be responsible for managing and allocating costs, assigning and verifying contracted costs, and the results of their production and business activities. TKV pays the companies for the costs of carrying out production stages based on economic and technical norms, including reasonable profit, through the purchase and sale prices within the TKV Group. TKV will only consider adjusting purchase and sale prices due to objective reasons, force majeure, government policies, and changes in input costs.

Based on the annual business coordination plan issued by TKV, TKV and its subsidiaries licensed to exploit mineral mines organize the signing of contracts for the purchase and sale of mineral products including: coal, bauxite ore, aluminum hydroxide, alumina, aluminum, copper plates and some other important minerals after extraction and processing. TKV then takes the lead in organizing the sale in domestic and international markets at prices agreed upon by both parties based on economic-technical standards and reasonable profit margins.

Selecting member units to carry out the construction work of structures inside mine shafts at underground coal and mineral mines.

The draft clearly states that, in cases where state budget funds are not used, TKV (Vietnam Coal and Mineral Group) is free to make procurement decisions on the basis of ensuring transparency, efficiency, and accountability.

This is a new, specific proposal from the Ministry of Finance. The Ministry of Finance stated that tunnel excavation and construction within the mine are crucial stages in the investment of underground mining projects, directly determining progress, capital efficiency, and production safety. Unlike conventional construction items, tunnel excavation and construction within the mine are highly specialized technical and safety-sensitive areas, heavily influenced by geological conditions, gas control, mine pressure, temperature, and the underground environment. This activity requires highly skilled miners, specialized construction organization, and a continuous technical monitoring system. In reality, the domestic market, outside of Vietnam National Coal and Mineral Corporation (TKV), almost lacks contractors capable of fully undertaking all stages of tunnel excavation and construction within the mine.

TKV currently has a system of subsidiaries and branches operating in a unified production chain, including units with the capacity to construct tunnels and underground structures, such as the Mining Construction Company – TKV. This unit has been comprehensively invested in equipment, construction technology, and a team of experienced personnel, meeting high technical requirements in deep mines and complex geological conditions.

Due to its organizational structure, most coal production units and mining project implementation within TKV are dependent branches of the same legal entity. Therefore, according to current regulations, these branches are not permitted to participate in bidding processes with each other. Meanwhile, during regular production, TKV needs to flexibly coordinate manpower, equipment, and tunnel excavation volumes between companies and branches, especially during the investment phase of new mines or production maintenance projects. Depending on the specific conditions of each mine and at each point in time, TKV may need to mobilize resources from other units within the system to ensure the completion of production plans, safety, and business efficiency. Without a specific legal mechanism, this coordination will face many obstacles and will not fully utilize the combined capabilities of the entire Group.

This is a specific, conditional mechanism designed for high-risk engineering fields requiring urgent deadlines, while still ensuring full transparency, openness, and strict control by the state-owned capital owner.

This mechanism will help TKV shorten the project implementation process, proactively manage mine progress, maximize the use of available technical capacity, human resources and equipment, ensure investment efficiency, production safety and stable coal supply for the national economy.

The draft is currently open for public comment on the Ministry of Finance's electronic portal.

Source: https://baochinhphu.vn/de-xuat-co-che-dac-thu-doi-voi-tap-doan-cong-nghiep-than-khoang-san-viet-nam-102251210170122082.htm