Raising the ceiling on coal mining for power generation.

The special mechanism allowing coal mining to exceed capacity by up to 15% is expected to help ensure fuel supply for electricity production until the end of 2027.

Amidst rising electricity demand, the Government has recently issued Resolution No. 28/2026/NQ-CP allowing legally operating coal mines to operate at up to 15% above their capacity to supplement fuel sources for electricity generation.

According to Mr. Tran Binh Trong, Director of the Vietnam Geological and Mineral Resources Department, increasing capacity without exceeding the licensed reserves is a matter of particular concern for the Government when drafting the Resolution. Photo: Mai Dan.

Speaking with a reporter from the Agriculture and Environment Newspaper, Mr. Tran Binh Trong, Director of the Vietnam Geological and Mineral Resources Department, stated that this is a timely solution to utilize the existing production capacity of the coal industry, contributing to ensuring national energy security until the end of 2027; while still ensuring the principle of not exceeding the licensed mining reserves.

Sir, what urgent energy security requirements are driving the resolution allowing coal mining to exceed capacity by 15%?

In recent years, Vietnam's electricity demand has continued to increase along with its economic growth, industrial development, and urbanization. Coal remains the primary fuel source for thermal power systems, contributing a significant proportion to the national power generation structure.

Given that other energy sources are dependent on weather conditions or the progress of new investment projects, ensuring a stable coal supply for thermal power plants is a critical requirement to guarantee national energy security.

Resolution No. 28/2026/NQ-CP, issued by the Government based on a comprehensive assessment of the energy supply and demand situation, allows for the application of a special mechanism to immediately utilize the existing production capacity of legally operating coal mines, thereby promptly supplementing the coal supply for electricity production from now until the end of 2027.

The important point to emphasize is that this mechanism does not allow for the expansion of exploitation beyond the licensed area, but only permits exploitation exceeding the maximum design capacity by 15% within the reserves approved and licensed by the competent authority, and only serves the goal of ensuring national energy security.

According to him, what obstacles will the new mechanism help coal mining companies overcome compared to current regulations?

According to standard regulations, when a business needs to increase its mining capacity, it must go through the procedure of adjusting its mining license, which involves reviewing many technical and environmental aspects and related administrative procedures.

Given the need to rapidly increase coal supply for electricity production, the full implementation of the license adjustment process may take considerable time.

Resolution No. 28/2026/NQ-CP has designed a specific mechanism to streamline administrative procedures. Specifically, for coal mining licenses that are still valid and fully meet the technical, safety, and environmental requirements, enterprises are allowed to mine at a rate of no more than 15% above capacity without having to go through the procedure of adjusting the mining license.

This helps businesses be more proactive in organizing production, making the most of existing equipment, human resources, and infrastructure, reducing the time and cost of administrative procedures, while still ensuring strict management of mineral resources in accordance with the law.

As a state management agency, how will the Vietnam Geological and Mineral Resources Department monitor the increased capacity to ensure that it does not lead to over-exploitation beyond the permitted reserves, sir?

This issue received special attention from the Government when drafting the Resolution.

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The overarching principle of the Resolution is that exceeding capacity is permitted, but absolutely not exceeding the licensed coal reserves. This is a legal boundary that must be strictly adhered to.

To control this issue, the Vietnam Geological and Mineral Resources Department will coordinate with the People's Committees of provinces with coal mining activities and other relevant agencies to implement a comprehensive set of solutions.

Firstly, regularly check and compare the actual production output with the remaining reserves of each mining license.

Secondly, enhance the application of digital technology, mineral databases, electronic reporting systems, and production monitoring tools to track the mining process.

Thirdly, conduct regular or unscheduled inspections and audits of mines operating under special mechanisms.

Fourth, businesses are required to fully comply with regulations regarding reporting on production output, mine safety, environmental protection, and financial obligations.

If violations are detected, the enterprise will have its special mechanism suspended and will be severely punished according to the law, including consideration of revoking its mining license if the violation is serious.

Production activities at the Bac Bang Danh mine - Ha Tu Coal Joint Stock Company. Photo: TKV.

The resolution stipulates that coal production exceeding capacity should only be used for electricity generation. How will the regulatory agency monitor this, sir?

This is one of the most important conditions of the Resolution.

Right in the application for exceeding mining capacity, the enterprise must clearly identify the address of the power plant that will receive the additional coal production, and commit to supplying this additional production solely for electricity generation purposes.

The regulatory agency will exercise control by comparing production output, sales contracts, shipping documents, sales invoices, and data received from power plants.

In addition, the Ministry of Agriculture and Environment will coordinate with the Ministry of Industry and Trade, the Vietnam Coal and Mineral Industry Group (TKV), the Northeast Corporation, and local authorities to monitor the flow of coal from mining to consumption.

Strict control over the output of excess capacity is necessary to ensure that the Resolution's objective of serving national energy security is met, and to prevent the misuse of the policy for business purposes outside of what is permitted.

According to him, how will this special mechanism contribute to ensuring coal supply and national energy security from now until the end of 2027?

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In the current context, this specific mechanism is timely, flexible, and necessary.

Allowing the exploitation of legally operating coal mines to exceed capacity by no more than 15% will help to quickly mobilize the existing resources of the coal industry without new investments or lengthy license adjustment procedures.

This solution contributes to increasing the coal supply for thermal power plants, reducing the risk of fuel shortages for power generation during peak periods, thereby supporting the stability of the national power system and serving socio-economic development.

However, it should be emphasized that this is a special mechanism, valid until December 31, 2027, and implemented on the principle of ensuring economical and efficient resource exploitation, not exceeding the licensed reserves, and strictly complying with environmental requirements, occupational safety, and financial obligations to the State.

With the strict control conditions stipulated in the Resolution, I believe that this mechanism will both contribute to ensuring the coal supply for electricity production and uphold the requirements of sustainable mineral resource management and national energy security.

Thank you very much, Director!

Source: https://nongnghiepmoitruong.vn/noi-tran-khai-thac-than-phuc-vu-phat-dien-d816129.html