Decision No. 20/2003/QĐ-TTg on approving the planning for the development of the coal industry in Vietnam for the period 2003-2010 with a view to 2020

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PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Considering the proposal of the Ministry of Industry (document No. 3989/CV-KHĐT dated October 10, 2002 and document No. 4909/CV-KHĐT dated December 9, 2002) regarding the approval of the Plan for the Development of the Coal Industry in Vietnam,

DECISION:

Article 1. Approves the Plan for the Development of the Coal Industry in Vietnam for the period 2003-2010 with projections to 2020, including the following main contents:

1. Orientation for the development of the coal industry:

- Coal is a valuable natural resource and a non-renewable energy source. Therefore, exploration, exploitation, processing, and utilization of coal must be efficient and economical.

- Develop the coal industry steadily to meet the demand for coal in the national economy; ensure a stable domestic market for coal consumption, with a reasonable portion for export to balance quantity, types, and generate foreign currency.

- The development of the coal industry must be closely linked to economic and social development, tourism, national defense, security, and environmental protection in coal regions, particularly in Quang Ninh Province.

- Continuously improve and apply science and technology to increase productivity and ensure safety in coal mining.

- Strictly manage coal resources.

2. Coal Resources:

The total coal reserves as of January 2002 were estimated at approximately 3.8 billion tons, of which:

- Hard coal is 3.4 billion tons.

- Mud coal is 0.4 billion tons.

- The coal reserves included in the plan are 2.5 billion tons.

During the period from 2003 to 2010, efforts should focus on intensifying exploration work up to -300 meters, while also initiating investigations and basic surveys below -300 meters in the Quang Ninh coal basin; gradually exploring the Red River Delta coal basin to serve the energy development strategy; other coal areas including mud coal.

3. Specific Objectives:

a) Production volume of commercial coal:

The production volume of commercial hard coal is expected to be as follows:

- By 2005: 16-17 million tons.

- By 2010: 23-24 million tons.

- By 2015: 26-27 million tons.

- By 2020: 29-30 million tons.

The production volume of commercial coal may be adjusted to suit market demands during each phase, including importing coal based on overall economic efficiency.

b) Production Technology:

Promote technological innovation in mining, especially underground mining; focus on mechanizing underground operations, supporting structures, and coal extraction to reduce resource losses, increase labor productivity, improve working conditions, and ensure industrial hygiene and safety. Modernize and integrate coal processing, refining, transportation, and coal port systems to minimize environmental impact.

c) Basic Construction Investment:

- Gradually invest in expanding and upgrading existing mines and coal washing plants, and open new mines to meet the national economy's coal needs (see annex).

- Investment capital requirements:

Total investment for the period 2003-2010 is estimated at approximately 14,166 billion VND, of which:

+ Investment for maintenance, expansion, and new construction is about 12,933 billion VND.

+ Additional business investment is about 1,233 billion VND.

- Sources of capital:

+ Own capital, commercial loans, preferential loans, and other sources.

+ The coal industry will be supported with part of the state budget for tasks such as planning the development of the coal industry and regions, conducting basic surveys of deep parts of the Quang Ninh and Red River Delta coal basins, and other coal areas including mud coal.

During the investment process, additional capital should be generated through various methods: foreign borrowing, deferred payment for equipment purchases, financial leasing, shareholding reform, issuance of project bonds, and business cooperation with domestic and foreign organizations.

Article 2. Implementation:

1. The Ministry of Industry, with its state management function, is responsible for directing the following basic tasks:

- Direct the implementation according to the approved plan, initially focusing on investment preparation and implementation for the period 2003-2010.

- Lead and coordinate with relevant ministries and sectors to direct Vinacomin and other enterprises outside Vinacomin to develop effective investment and exploitation plans; propose mechanisms and policies to ensure safety during mining operations; study and propose development policies and policies for coal industry workers.

- During the implementation of the plan: organize periodic evaluations of the plan's implementation and propose adjustments to the plan to align with the coal industry and the country's socio-economic situation.

- Direct the coal industry to closely cooperate with ministries, sectors, and localities (especially Quang Ninh Province) to implement effective measures to minimize negative impacts on landscapes, environment, and ecology in operational areas.

2. The Ministry of Planning and Investment leads and coordinates with relevant ministries and sectors to study support policies and balance capital sources for the development planning of the coal industry, regional coal planning, and basic surveys up to -300 meters and below -300 meters in the Quang Ninh and Red River Delta coal basins, and other coal areas including mud coal.

3. The Ministry of Finance leads and coordinates with related sectors to base on each period, production and consumption situations of coal, submit to the Prime Minister for a decision on reasonable coal selling prices for four major coal consumers: electricity, cement, paper, and fertilizer, according to the principle of covering reasonable production costs to move towards market-based coal pricing by 2006.

4. Chairmen of People's Committees of provinces with coal resources: Quang Ninh, Lang Son, Thai Nguyen, Bac Giang, Nghe An, Quang Nam, Hung Yen... direct provincial departments and coordinate with ministries, sectors, and Vinacomin to create favorable conditions for coal industry units to implement this plan.

5. Vietnam National Coal Mining Corporation and other coal production and business units shall be responsible for organizing the implementation of the Plan and ensuring the supply of coal to the national economy. Effectively perform the tasks of managing and exploiting the assigned natural resources. Develop plans and implement training programs to develop human resources, promote scientific and technological activities to absorb advanced techniques from around the world and the region in the field of coal exploration and exploitation with high productivity and ensure safety. Coordinate with localities in planning and organizing the exploration and exploitation of mud coal for fertilizers to serve agriculture and rural development.

Article 3. This Decision shall take effect fifteen days from the date of signature.

Article 4. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and municipal People's Committees under the central government, Chairpersons of the Board of Directors and General Directors of Vietnam National Coal Mining Corporation, and Heads of related agencies shall be responsible for implementing this Decision.