Hesitating to hand over the most beautiful coal mine in Quang Ninh to foreign investors

Continue to discuss

According to TKV, the license revocation and land reclamation for Pt.Vietmindo Energitama Company, 100% Indonesian capital (Vietmindo) for TKV to expand exploitation has been discussed for many years, with many meetings and directive documents from the government to ministries, branches and localities.

However, up to now, a large coal mine of Vietmindo in Vang Danh ward, Uong Bi city, with a large remaining reserve of beautiful coal, has stopped mining but is still under the management of this company.

To continue to resolve this issue, the People's Committee of Quang Ninh province requested TKV to continue to closely follow the Ministry of Natural Resources and Environment to approve the Project to close Dong Vong - Uong Thuong coal mine in accordance with the direction of Deputy Prime Minister Tran Hong Ha in Notice No. 139/TB-VPCP dated April 19, 2023 of the Government Office . Assign the Department of Planning and Investment of Quang Ninh province to urgently work with the competent agencies of the Ministry of Planning and Investment so that the Ministry can soon issue a document guiding the termination of the project's investment activities.

According to TKV, on April 19, 1991, Uong Bi Coal Company, a member of TKV, was assigned to sign a business cooperation contract with Vietmindo. Accordingly, Vietmindo invested in all machinery and technology to exploit the Dong Vong - Uong Thuong coal mine, Vang Danh ward, Uong Bi city, for 30 years. The profit was divided at a ratio of 90% for Vietmindo and the remaining 10% for Uong Bi Coal Company. The open-pit coal mine covers an area of over 1,000 hectares, is home to the best coal seams in Quang Ninh , and has very favorable mining conditions.

Exploited enough quantity according to license

For many reasons, it was not until 1997 that Vietmindo began mining coal here.

According to the contract, Vietmindo is only allowed to mine for export and is only allowed to mine 500,000 tons of commercial coal each year, equivalent to about 750,000 tons of raw coal. However, the company often mines more than the above figure.

According to the license, Vietmindo is allowed to exploit until 2021, but is limited to an output of 6.25 million tons of clean coal. Accordingly, even if the output reaches 6.25 million tons before 2021, the relevant parties will consider stopping or extending the license.

Dong Vong - Uong Thuong open-pit coal mine has temporarily stopped mining. Photo: Nguyen Hung

According to TKV's data, from 1997 to the end of 2018, Vietmindo Company exploited a total of over 10 million tons of clean coal, equivalent to 13.5 million tons of raw coal, of which over 8.6 million tons were exported.

However, according to regulations, the application of the 6.25 million ton production limit was only calculated from 2009 when the Mineral Law was first enacted.

And so, from 2009 to the end of 2018, Vietmindo Company exploited over 6.1 million tons of clean coal.

However, regardless of the calculation method, by the time the license expires in 2021, according to TKV, the amount of coal exploited by Vietmindo Company will have reached at least 6.25 million tons.

Currently, Vietmindo Company has stopped mining activities. However, the handover of the site is extremely difficult because the two sides are still stuck with many procedures. A representative of the People's Committee of Uong Bi City said that, up to now, Vietmindo Company has only handed over to the city about 60 hectares out of the total hundreds of hectares within the mine boundary assigned to this company.

According to regulations, only when Vietmindo hands over the entire site will the local government, together with relevant departments, branches and units, complete the next procedures to hand over to TKV.

Previously, in April 2019, responding to Lao Dong Newspaper, the leader of Vietmindo Company said that he had sent a document requesting a 20-year extension at the above coal mine in Vang Danh ward, Uong Bi city.

This person said that according to the license, the company is allowed to exploit in the Uong Thuong and Dong Vong areas, but as of 2019, the company has only exploited in Uong Thuong. In Uong Thuong, the reserves are about 1.5 million tons; while the reserves in Dong Vong are about 12 million tons.

After that, the Department of Natural Resources and Environment of Quang Ninh province sent an official dispatch to Vietmindo Company informing that the land lease contract for the area where the company was licensed by the General Department of Geology and Minerals of Vietnam to mine coal in Uong Thuong, Vang Danh ward, Uong Bi city had expired.

In case Vietmindo Company wants to continue leasing land, it must base on many factors, including whether the relevant ministries and branches agree to extend the exploitation license or not.

However, in an official dispatch sent to the General Department of Geology and Minerals of Vietnam on December 22, 2021, TKV requested not to extend the license and close the mine immediately after the license expired.

Source: https://laodong.vn/kinh-doanh/dung-dang-xu-ly-mo-than-thuoc-dien-dep-nhat-quang-ninh-giao-cho-nha-dau-tu-nuoc-ngoai-1356471.ldo