Decision 55/QD-TTg 2024 approving the Development Strategy for Vietnam’s Coal Industry

DECISION

Approving the Development Strategy for Vietnam’s Coal Industry through 2030, with a vision toward 2045

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THE PRIME MINISTER

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law amending and supplementing a number of articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Political Bureau’s Resolution No. 55-NQ/TW dated February 11, 2020, on orientations of Vietnam's National Energy Development Strategy through 2030, with a vision toward 2045;

Pursuant to the Political Bureau’s Resolution No. 23-NQ/TW dated March 22, 2018, on orientations for formulating national industrial development policies through 2030, with a vision toward 2045;

Pursuant to the Political Bureau’s Resolution No. 10-NQ/TW dated February 10, 2022, on strategic orientations for geology, minerals and mining industry through 2030, with a vision toward 2045;

At the request of the Ministry of Industry and Trade in Report No. 7721/TTr-BCT dated December 1, 2022 and Documents No. 4111/BCT-DKT dated June 29, 2023, No. 6137/BCT-DKT dated September 6, 2023 and No. 9266/BCT-DKT dated December 28, 2023 of the Ministry of Industry and Trade on approving the Development Strategy for Vietnam’s Coal Industry through 2030, with a vision toward 2045; and opinions of ministries, branches and localities on the Development Strategy for Vietnam’s Coal Industry through 2030, with a vision toward 2045.

DECIDES:

Article 1. To approve the Development Strategy for Vietnam’s Coal Industry through 2030, with a vision toward 2045 (hereinafter referred to as the Coal Industry Development Strategy) with the following contents:

I. DEVELOPMENT VIEWPOINTS

1. To develop the coal industry on the basis of efficient and resource-saving exploitation, processing, and utilization of the country's coal resources; to manage export and import in a reasonable manner in association with domestic production and consumption and assurance of national energy security.

2. To enhance exploration and evaluation of domestic coal resources and reserves to provide reliable resource foundations for sustainable investment in the coal industry.

3. To develop a sustainable and efficient coal industry in a coordinated and compatible manner with the overall development of other sectors of the domestic economy; to diversify investment methods in coal exploitation and trading. To maximize internal resources in combination with expanding international cooperation to research, deploy and apply scientific and technical advances and modern new technologies, especially the achievements of the Fourth Industrial Revolution in management of exploration, mining, screening - processing, transportation, and use of coal.

4. To implement coal trading based on a market mechanism under state management, in harmony with the global coal market; to gradually transform the coal market towards complete competition and compliance with international market practices.

5. To develop the coal industry in association with protecting and improving the ecological environment, promoting cleaner production and circular economy, adapting to climate change, reducing greenhouse gas emissions, and aligning with international commitments that Vietnam participates in; to harmonize with tourism development and minimize impacts on cultural conservation areas; to actively contribute to the cause of economic and social development; to link with the tasks of strengthening and enhancing national defense and security; to ensure safety in production.

6. To research efficient foreign investments for coal mining (the type of coal that Vietnam must import) and bring it back to Vietnam for use in order to gradually reduce the amount of imported coal; to proactively seek stable, long-term coal import markets with large volumes to ensure competitive, effective prices and compliance with the market and international practices in service of the development needs of domestic sectors according to each stage of development.

7. To expeditiously deploy the construction of a large-scale system of ports, warehouses, and coal transshipment centers. To properly reserve coal to meet the requirements of production activities, especially electricity production.

II. DEVELOPMENT OBJECTIVES AND ORIENTATIONS

1. Regarding coal exploration and mining

- To focus on exploring and upgrading existing coal resources; to promote exploration of new mines to ensure that exploration work is always one step ahead. To strive to basically complete the exploration work to the bottom layer of the Northeast coal basin, and complete the exploration work to the bottom layer of the An Chau coal basin to verify and upgrade coal reserves to ensure sufficient reliability according to regulations for exploitation design.

- To innovate and apply advanced coal exploration and mining technologies, especially in areas located at great depths and with complex geological conditions. To improve the quality of assessment of coal reserves and resources.

- To actively seek domestic and foreign partners to research and invest in selecting appropriate technologies and exploration methods to explore the Red River Coal Basin in the period up to 2030. To strive to complete the exploration of a part of the area and complete the survey and assessment of resources of the Red River Coal Basin in the 2031 - 2045 period.

- To focus on developing and maintaining large-scale underground mines according to the criteria of "Green Mine, Modern Mine, High-Output Mine, Safe Mine"; to develop sustainable mining output; to ensure safe, efficient, and resource-saving coal exploitation. To enhance mechanization and modernization in coal mining; to increase the clean coal recovery ratio in underground mining.

- To invest in a number of experimental mining research schemes/projects in the Red River Coal Basin to select appropriate mining technologies.

- To encourage localities with small coal reserves to invest in mining to serve local demand; to focus on the exploitation of coal mud as fuel and fertilizer for the agricultural and forestry sectors.

- To seek foreign investment opportunities for exploration and mining of coal (the type of coal that Vietnam must import) to ensure efficiency and compliance with the law provisions.

- To strive to achieve an annual production of about 45 - 50 million tons of commercial coal (excluding coal mud) by 2030 and gradually reduce it in the 2031 - 2045 period (reaching about 38 - 40 million tons by 2045).

- To strive to put the experimental mining in the Red River coal basin into operation before 2040 to move towards industrial-scale mining before 2050 (if the experiments are successful).

2. Regarding coal screening and processing

- To develop coal screening and processing activities with the aim of increasing the concentration of coal screening and processing in the industry as a whole; to diversify products to meet the appropriate coal demand according to the market in each stage.

- To maintain and upgrade existing coal screening plants and processing centers, in combination with reasonable maintenance of coal mining clusters; to invest in the construction of new centralized coal screening plants in each region to ensure the requirements for coal processing.

- To process domestically produced coal in combination with imported coal blending in the direction of maximizing coal types for electricity production; to promote research and application of science and technology to diversify products according to the market, meet requirements for environmental protection and reduce greenhouse gas emissions.

- To carry out coal screening and processing activities at local mines that are suitable for consumption needs and project capacities; to construct centralized coal mud processing facilities with advanced technology in the direction of prioritizing the processing of quality products for use in the agriculture and forestry industry and meeting environmental protection requirements.

3. Regarding the coal market

- To establish a coal market with multiple sellers and buyers, diversify coal sources (domestic production, blending, imports, etc.) and coal supply channels to meet the needs of consumers in the period up to 2030; to strive to operate a fully competitive coal market in various market segments after 2030.

- To complete the research and pilot application of appropriate international coal price indices as a reference for import coal prices according to Vietnam’s specific conditions in accordance with the roadmap for developing a competitive energy market approved by the Prime Minister.

- To export and import coal in accordance with market demand and government directives to ensure maximum fulfillment of domestic coal consumption needs, especially for electricity production, including considering coal reserves.

4. Regarding safety and environmental protection:

- To implement the criteria for "Safe - Modern - Environmentally Friendly" mines; to enhance the application of scientific and technological advancements to effectively control risk factors in coal production.

- To develop the coal industry into a circular economy adaptable to climate change; to promote sustainable, harmonious, environmentally-friendly development that benefits communities and other economic sectors; to prevent pollution, desertification, and water depletion; to ensure the flow of rivers; to protect groundwater; to prevent land subsidence, landslides, etc. To research efficient exploitation and utilization of mine waste rocks to promote circular economic development and environmental protection.

- To perform environmental protection in the coal industry in association with the target of reducing greenhouse gas emissions toward the goal of net-zero emissions by 2050.

5. Regarding development of infrastructure for coal production and trading:

- To construct new and improve existing facilities according to the appropriate land use requirements of each mining, screening, and processing project, ensuring landscape, environment, disaster prevention, and efficient coal production to meet flexible land development needs in the future.

- To organize a transportation system suitable for coal production capacity in each region with modern, environmentally friendly, and economically efficient technology.

- To upgrade, expand, and construct new domestic ports in coal production areas to serve export, import and blending of coal with advanced, modern and environmentally friendly technology.

- To research and upgrade existing specialized ports for consuming households to enable direct coal import and transshipment for vessels with suitable tonnage when centralized ports have not been established in the regions.

- To focus on developing coal export and import infrastructure; to expedite the construction of large-scale port systems, reserve warehouses, and coal transshipment facilities by region, with appropriate port types, technical infrastructure, synchronized logistics services, and advanced, modern, environmentally friendly technologies to serve export, import, and blending of coal to meet domestic coal consumption needs, especially for electricity production.

III. TASKS AND IMPLEMENTATION SOLUTIONS

1. Regarding policy mechanisms

- To complete the legal framework for the coal industry in accordance with the development stages of the energy market in the direction of promoting efficient and resource-saving exploitation and utilization of coal resources; At the same time, to ensure consistency of relevant regulations and compliance with actual conditions, international practices and the country's future development trends.

- To review, supplement, adjust and complete policies on land, compensation and site clearance; to manage, protect and develop forests, etc. in order to ensure the development of coal industry projects that meet the Strategy’s objectives.

- To create a favorable and transparent environment; to move towards removing all barriers to ensure transparent coal prices determined by the market.

- To promulgate mechanisms and policies for supporting and promoting enterprises investing in coal exploration and mining abroad.

- Enterprises engaged in coal production, trading and utilization shall review and complete regulations on coal reserves, ensuring they meet coal requirements for production activities, especially electricity production; including provisions to cope with risks in coal imports and extreme weather fluctuations.

2. Regarding organization

- To implement production centralization through interconnection, merger, and consolidation of mines and coal production enterprises to create mines with large-scale output.

- To carry out a comprehensive restructuring of state-owned enterprises in the coal industry by focusing on core, strong areas. To thoroughly restructure ineffective state-owned projects and enterprises.

3. Regarding finance and investment

- To prioritize allocating funds for basic investigation and search of domestic coal resources from budget capital and preferential capital sources.

- To diversify sources and forms of capital mobilization to invest in developing the coal industry, especially for infrastructure and logistics systems serving coal import and coal mining projects in areas where the coal industry has not yet mastered the technology.

- To gradually increase the ability to mobilize internal finance in coal industry enterprises through improving the efficiency and performance of enterprises, ensuring accumulation and progress towards the main source of capital mobilization for investment projects from accumulated capital of enterprises.

- To promote negotiation and efficient use of funding sources and support capital arrangements from international partners in the process of implementing a fair transition for the coal industry in accordance with the energy transition trend and towards the goal of net-zero emissions in Vietnam.

4. Regarding human resources

- To proactively improve the staff working in training and developing human resources of the coal industry; to strengthen cooperation and joint ventures with foreign countries in training and developing human resources to meet the requirements of the industry, in accordance with the requirements of the period of international integration and the 4^th industrial revolution.

- To complete policy mechanisms on labor, wages, and benefits to attract workers (especially workers in underground mines) to create motivation for workers to make long-term contributions to the coal industry, especially highly qualified, technical and skilled workers.

5. Regarding science - technology, safety, environment

- To strengthen research and application of, receive transfer of, and master advanced technology and techniques in exploration, mining, transportation, processing, blending and utilization of coal, enhance coal resource management, environmental management, safety and technical management, and coal production management (especially anti-collision digging technology, coal mining below -300m level in the Northeast Coal Basin; coal exploration and mining technology in the Red River Coal Basin) in accordance with the trend of the 4.0 industrial revolution.

- To promote the conversion of equipment and technology to improve efficiency and save coal resources; to research and develop technologies to capture and use mine gas generated during the coal production and utilization; to research on converting coal burning technology to burning coal with biomass fuel, ammonia, etc. to achieve the goal of net-zero emissions by 2050.

- To strengthen research, application and transfer of technologies in processing coal into clean energy and other products to diversify products processed from coal.

- To promote internal resources in combination with expanding international cooperation in research, application of science and technology, transfer and reception of advanced technologies in manufacturing equipment, supplies and materials for mining production and business and environmental treatment of coal areas, etc.

- To review, amend and supplement national standards and regulations in the field of coal industry in accordance with international regulations and standards in exploration, mining, transportation, processing and blending, reserve, utilization of coal and reuse of mine waste rock and soil.

6. Regarding business administration, cost control and risk management

- To enhance strict inspection and control of mine boundaries and resources and minerals during the management, production, transportation, processing and consumption of coal.

- To complete the system of technological indicators, basic standards, and economic-technical norms; to establish a system of mechanisms to identify, evaluate, prevent and handle risks in investment, production and business of enterprises.

- To restructure coal industry enterprises with a specific roadmap, suitable for the development stages of the energy market.

Article 2. Organization of implementation

1. The Ministry of Industry and Trade

- Assuming the responsibility for, and coordinating with relevant ministries, branches and localities in, implementing this Strategy.

- Researching and completing mechanisms and policies, and supervising law enforcement; carrying out inspection, examination and supervision according to the functions and tasks assigned by the Government and the provisions of specialized laws.

- Coordinating with relevant ministries and branches to implement science and technology projects, programs, tasks, innovate, transfer and master technology to serve the development of the coal industry.

2. Ministries, branches, and Committee for Management of State Capital at Enterprises

Researching on tasks and solutions to implement the Strategy in this Decision and implement specific tasks in accordance with assigned functions and tasks to effectively implement the goals of the Strategy, ensuring being unified and synchronized with the implementation of the 10-year Socio-Economic Development Strategy in the 2021 - 2030 period, and Socio-economic Development Plan of each sector and locality.

3. People's Committees of provinces and centrally-run cities

- Strengthening dissemination and education of mineral laws; effectively taking measures to protect mine boundaries and protect coal resources in localities under their management according to regulations.

- Examining and inspecting the implementation of mineral laws by organizations and individuals with local coal mineral activities according to regulations.

4. Related enterprises and organizations

a) Vietnam National Coal - Mineral Industries Holding Corporation Limited and Dong Bac Corporation

- Continuing to assume the main responsibilities for sustainable development of the coal industry; performing well their role as key focal points in providing domestically produced coal to economic sectors, especially for electricity production; proactively and actively seeking reputable coal suppliers in the world with long-term stable coal sources to diversify imported coal sources.

- Exploiting, processing, and supplying coal according to approved viewpoints, orientations, and goals for coal industry development; ensuring sufficient coal supply for consuming households in accordance with signed coal purchase/supply contracts, especially ensuring sufficient coal supply for electricity production according to long-term, medium-term, and short-term coal purchase/supply contracts signed with investors of coal-fired power plants.

- Actively and proactively seeking and coordinating with qualified domestic and foreign organizations and individuals with appropriate technology to research, invest in technology selection, and choose appropriate exploration methods to implement experimental mining schemes/projects and move towards effective industrial mining of the Red River Coal Basin.

- Researching and applying science and technology in processing coal into clean energy and other products (used for metallurgy, coal gasification to produce suitable gas products to serve the energy sectors and industries, etc.) to diversify products processed from coal; proposing and receiving technical assistance programs/projects to transform the coal industry's sustainable business model in the new situation. Developing specific roadmaps, plans/programs to promote research and application of science and technology appropriate to each type and technology of coal mining and processing to ensure the implementation of the Strategy’s objectives.

- Coordinating with domestic investors and qualified foreign investors to research and invest in the construction of coal transshipment ports.

- Researching tasks and solutions to implement the Strategy in this Decision and implement specific tasks consistent with assigned functions and tasks to effectively implement the Strategy’s objectives.

b) Households using coal

- Proactively reviewing production stages to improve coal use efficiency; researching and developing appropriate plans and roadmaps to convert coal burning technology to increase autonomy in preparing coal fuel for production and in accordance with international commitments that Vietnam participates in.

- Researching tasks and solutions to implement the Strategy in this Decision and implement specific tasks consistent with assigned functions and tasks to effectively implement the Strategy’s objectives.

Article 3. This Decision takes effect from the date of signing.

Article 4. Ministers, heads of ministerial-level agencies, heads of governmental agencies, chairpersons of People's Committees of provinces and centrally-run cities and relevant organizations and individuals shall implement this Decision./.

For the Prime Minister

The Deputy Prime Minister

TRAN HONG HA