TKV: Speed up production to meet coal demand of the market

In 2023, Vietnam National Coal - Mineral Industries Group (TKV) strives to produce over 39 million tons of coal and consume 46.5 million tons. Since the beginning of the year, despite facing many difficulties and challenges, TKV has always proactively and flexibly managed production and consumption, meeting coal output for the market and ensuring coal for electricity production.

Workers of Uong Bi Coal Company control the support system in the longwall.

Strive to achieve high output targets

Uong Bi Coal Company is one of the main underground coal production units of TKV. However, compared to other underground coal mining units, the company currently has a difficult production area because it is going deep and the construction site is scattered in many different areas. According to the plan, in 2023, the company will produce 2.5 million tons of raw coal, dig 30,100m of tunnels, and consume 2.295 million tons of coal. Currently, Uong Bi Coal has 18 mining market tunnels, arranged 21 mining and tunneling workshops.

The company is currently operating in 5 mines with a planned technical output of 2.5 million tons of coal in 2023. However, in 2023-2024, the company will terminate 2 projects due to exhausted mining reserves, leading to a decrease in output to 1.9 million tons/year if there are no new projects. Therefore, the company needs to invest in new mine projects, especially the underground mining project in Tan Yen - Dong Trang Bach mine (capacity of 450,000 tons/year) which has been approved by TKV and is being prepared and deployed for exploitation.

Mr. Pham Hong Thai, Director of Uong Bi Coal Company, said: Since the beginning of 2023, the company has had many solutions, focusing on promoting mechanization in production, investing in mechanized systems for digging coal and stone kilns. At the same time, flexible production and consumption management has gradually overcome difficulties, maintained safety and stabilized production. June is the decisive time to complete the second quarter target, creating momentum to complete the plan for the first 6 months of the year and for the following months, so Uong Bi Coal Company is promoting emulation to strive for the highest level of coal production.

The Party Committee of Ha Long Coal Company organized the installation of a signboard for the 6KV Distribution Station No. 1, 2, 3 level -350, Khe Cham II/IV area (June 15, 2023).

In the first 5 months of 2023, Uong Bi Coal Company produced more than 1.1 million tons of coal, dug 13,500m of tunnels, consumed nearly 1.1 million tons, and the average salary of workers reached more than 19.2 million VND/person/month. The company is assessed by TKV as one of the underground production units with high results and the production and business plan targets for the first 6 months of the year are expected to reach 52% of the yearly plan or more. (It is expected that in the first 6 months of the year, the raw coal produced by the unit will reach more than 1.3 million tons, reaching 52% of the yearly plan; consuming more than 1.3 million tons, reaching 57.27% of the yearly plan).

Da Bac Logistics Company is the main coal consumer of TKV in the Uong Bi and Dong Trieu areas. In 2023, the company was assigned by TKV to consume nearly 11.8 million tons of coal. To achieve this goal, since the beginning of the year, the company has closely followed the production targets of mines in the Western region, proactively developing a plan to coordinate with companies to pull coal from the mines to the warehouse to serve the processing and blending of coal to supply the market. At the same time, organizing the delivery of coal to customers in accordance with the Group's operating plan.

In the first 6 months of the year, it is expected that most of the production and business targets of Da Bac Logistics Company will complete the set plan. Of which, the output of imported coal is expected to reach 6.7 million tons, reaching 56.7% of the yearly plan; coal consumption is expected to reach 6.6 million tons, reaching 55.9% of the yearly plan. Completing over 50% of the plan target in 6 months creates a premise for the company to make a breakthrough and stabilize production in the third quarter and the last months of the year. Currently, Da Bac Logistics Company is focusing on organizing coal transportation of production units to create sources for consumption. The company will receive imported coal according to TKV's allocation targets for blending and processing according to plan.

Faced with the continued high demand for domestic coal consumption, especially in the summer months, TKV units are accelerating production and consumption, striving to complete over 50% of output within 6 months. It is expected that in the first 6 months of 2023, TKV will exploit more than 20 million tons of coal, reaching 51.3% of the annual plan; coal consumption will be 25.1 million tons, reaching 54% of the annual plan.

Determined to provide enough coal for the market

Implementing the production and business plan for 2023, TKV has to face many difficulties. The increasing demand for coal to serve domestic economic development has put great pressure on the Group's coal production and supply. Meanwhile, the application for and extension of coal and mineral mining licenses is hindered by unsynchronized planning, mechanisms and policies, which has limited TKV's coal production capacity due to the inability to increase coal mining output.

Through analysis and assessment of the Coal industry, the main reason is due to problems in planning, licensing of mines for production and coal exploitation of some units. At Cao Son coal mine, due to problems in licensing procedures for mining extension, overlapping with projects of other units, production capacity is limited. It is expected that in the first 6 months of the year, the mining output of Cao Son Coal Joint Stock Company will only reach more than 2.2 million tons. At Coc Sau Coal Joint Stock Company's coal mine, the unit's production area is currently facing many difficulties due to the deep depth, it is likely that the company will find it difficult to complete the mining output of more than 1.5 million tons of coal according to the plan for 2023.

These days, Cao Son Coal Joint Stock Company is stepping up mining of coal at the bottom of the mine.

Mr. Dang Thanh Hai, General Director of TKV, said: At this time, TKV units are racing against time to increase coal mining and production output for the whole year. The Group directs units to take advantage of favorable weather conditions to boost production; continue to promote the progress of major investment projects such as Deo Nai, Coc Sau, Khe Cham II, IV, especially the project to increase the capacity of Cao Son mine to 4.5 million tons/year. Along with that, closely following the design capacity, units review the production and business plan for 2023 to balance output and increase mutual assistance and support, especially for units facing difficulties.

In the immediate future, to overcome difficulties, the Group will focus on resolving the problems of the Cao Son coal mine expansion and renovation project; focus on working with the Dong Bac Corporation to agree on a solution to the problem of boundary overlap. At the same time, continue to closely monitor the operation and coal use of thermal power plants to be proactive in managing production, consumption, and coal import to supply coal according to contracts. Encourage and mobilize workers in the entire industry to compete in labor production to increase coal output to the highest level to supply enough coal to customers who have signed economic contracts.

According to the assessment of the National Power System Dispatch Center, in 2023, the demand for mobilizing coal-fired thermal power plants will be much higher than in 2022. Therefore, to meet the electricity demand for socio-economic development and people's lives in the dry season of 2023, thermal power plants must ensure maximum availability, reliable and stable operation throughout the dry season and must prepare enough coal for production.

Recognizing that the domestic electricity demand will continue to increase in the coming time, TKV will focus on closely monitoring the operation of power plants; improving the efficiency of detecting and promptly resolving incidents; speeding up the repair of equipment and generators to ensure quality. Implementing investment projects in accordance with regulations, ensuring long-term efficiency; developing investment plans and upgrading power plants to ensure sustainable and long-term operation.

Loading and consuming coal at Dien Cong Port (Da Bac Logistics Company).

Implementing the Government's direction and the Ministry of Industry and Trade 's direction on supplying coal to thermal power plants during the dry months (May, June, July 2023), especially the direction of Prime Minister Pham Minh Chinh during his working trip to Quang Ninh on June 11, 2023, TKV is boosting production, ensuring coal supply for electricity production, including EVN's thermal power plants. In June and July, TKV adjusted the output to supply to thermal power plants by about 180,000 tons/month, of which EVN's plants will supply about 80,000 tons/month, an increase of 6% compared to the progress committed in the contract.

In the last 6 months of 2023, TKV will continue to be proactive and flexible in managing production and consumption based on closely following the market; continue to promote and maintain production pace; improve productivity, increase output in the spirit of readiness to meet and ensure enough coal for consumers, especially coal for thermal power according to the direction of the Prime Minister. TKV commits to producing about 18.7 million tons of coal in the last 6 months of the year, and is expected to reach 39.7 million tons for the whole year, an increase of about 15% over the same period in 2022 to provide enough coal for thermal power plants.

Source