CURRENT STATUS OF COAL DEMAND AND …

1 VIETNAM NATIONAL COAL - MINERAL INDUSTRIES HOLDING CORPORATION STATUS OF COAL DEMAND AND CURRENT STATUS OF COAL DEMAND AND SUPPLY IN VIETNAMSUPPLY IN VIETNAMANDANDPLAN OF VINACOMIN IN THE COMING TIMEPLAN OF VINACOMIN IN THE COMING TIMEMr Le Minh ChuanMr. Le Minh ChuanPresident & CEO11 Introduction to VINACOMINI ntroduction to VINACOMIN VinacominisaneconomicCorporationwith100% ownedbytheStateplaysanVinacominisanecono micCorporationwith100%ownedbytheState,pl aysanimportant role to ensure national energy security of ttif95%fttl Vinacoministhemajor coalproducerinVietnam accountingfor95%oftotalcoal production, providing anthracite for power sector, industries using coal innational-wide and world-wide, investing in development of power plants;exploration andprocessing minerals.

2 Involving in the industries of chemical,engineering, construction materials, supporting for the main In 2012, the turnover of Vinacomin reached billion USD; the production:4406milliontonsofrawcoal; ; ,inwhichlocalmarket: million tons, export: million ResourceCoal Resource Total coal resources until 1stJan, 2011: of Resourcesbillion tons in which measured& indicatedreserves (categories A+B+C1) bn. tonsaccount for 6%;inferred(C2)&prognostic6%5%A+B+C1;(2) pgresources (P): 94%. InNorthEastarea:87billiontons89%A+B+C1C2 P (anthracite).IRdRiDltlbi394billiTypes of Coal (sub-bituminous).18%0%1%AnthraciteFat coal Some anthracite & fat coal deposits in theNorthern Provinces and peat in Mekong STATUS and Coal DEMAND of CURRENT STATUS and Coal DEMAND of Vietnamese MarketVietnamese Market In recent years, the DEMAND of coal for the domestic market in Vietnam hasVietnamese Market Vietnamese Market increasedsteadily every year.

3 In five years, domestic coal DEMAND has increasedfrom 18 million tons (in 2007) to million ton (in 2012). According to the Master plan of coal industry development in Vietnam by 2020,with perspective to 2030, the total coal output will reach 55 million tons in 2015,60milliontons(in2020)65-70millionto ns(in2025)and65-75millionton(in60million tons(in2020),65-70milliontons(in2025)and 65-75millionton(in2030).Aditthblfldddift hlttit Accordingtothebalance ofsupplyanddemand,ifthepowerplantsputint ooperation on schedule under the Power Master plan VII, Vietnam will need total62-72 million tons of coal (in 2020); in which coal for power: 42-72 million tons,coal for other industries: 20-22 million tons.)

4 This means Vietnam has to importenergy coal for thermal power plants in Southern area with amount from DEMAND and Supply Coal DEMAND and Supply Coal ExportationCoal Exportation Vietnam's exported coal has reduced from million tons (in 2007) to 14million tons (in 2012). The high quality coal hasbeing exportedto the EU, Japan,South Korea, Taiwan, ; the medium quality dust coal has mainly beingexportedto China andother In the future, when the DEMAND of coal for domestic market arises, especially coalfor thermal power plants, the average and low quality coal will be reduced andstoppedexporting. By 2015, the exportplan of Vinacomin willbe significantlyreduced to million tons and continue reducing in the coming Inspire ofthekey responsibilityis to ensure coalsupplytothe economy ofVietnam, Vinacomin will continue giving priority to provide coal stably fortraditional customers includingJapan as the signedcontracts andwillpropose togpgppthe Vietnamese competent authorities to continue supplying coal for Japanesemarket in coming of Export SalesOverview of Export SalesppWestern EuropeWestern Europe2010 Exports Volume by Country (> 30 countries)Japan8%EKo r ea9%JapanJapan()

5 Others6%China77%Eur o p e0% ChinaKoreaChinaKoreaThailandBrazilThaila ndBrazilBrazilBrazil77 Coal ImportationCoal Importation Vinacomin was assigned by the Vietnamese Government as the key role to import coal forltiVi tDitiViihti ,Vinacominhas actively approachedandinvestigatedmarkets such as Indonesia, Australia, Russia to seek for sources of coal importing to Vietnam. Vinacomin has discussedthe demandofimportingcoal with majorthermal coal suppliers overpgjppthe world and has signed some agreements on importing coal with the companies fromAustralia and Indonesia for some thermal power projects which are expected to use importedcoal. Vinacomin is now also cooperating with big trading companies from Japan to seek for sourceof coal importing to the thermal power projects in Vietnam after 2016.

6 In orderto serve forimporting coal, Vinacomin was assignedto make "The investmentprojectof transshipment port for imported coal, supplying coal for thermal power centers in MekongRiver Delta". JICA has supported Vinacomin and selected Sumitomo as a consultant to makefhijlidiiildi iFS ofthisproject. Currently, JICA, Sumitomo andVinacomin are actively coordinating toimplement necessary works to complete the FS and submit to Vietnamese Government of Vinacomin In The Coming TimePlan of Vinacomin In The Coming Time To ensure the coal supply to the economy in the coming period, Vinacomin has tohhiiifiiililfil bllenhance the activities ofinvestigation, exploration, supplement ofavailablecoalreserves and increase productivity, expand the scale of mines and develop newmines, focus on investment in building deep underground mines with highproductivity.

7 Vinacomin was assigned by the State for management, exploration, technologyttidlittifliRdRiDltTh fViihbitesting andexploitation ,Vinacominhasbeingseek for foreign partners to jointly research and test coal mining technology. Base onthe test results, the appropriate coal mining technology and scale of exploitation willbe determined. VINACOMIN will promote technologicalresearch, apply advance coal processingtechnologytowardtodiversificat ionofproductscreatecleanandenvironmentte chnologytowardtodiversificationofproduct s,createcleanandenvironment-friendly products, build power plants using FBC/CFBC technology for the purposeof reducing environment pollution and increasing the operational of Vinacomin In The Coming TimePlan of Vinacomin In The Coming Time To ensure sustainable growth as the target set out in the context of the worldiillidiffi liifi lffhiiidileconomyisstillindifficulty.

8 Significantlyaffects to theminingindustryingeneralbeside the internal difficulties such asdeep mining condition, lack of investmentcapital for the development of new projects .., Vinacomin always actively seek andwilling to cooperate withpartners overthe worldincluding Japan,particularlycooperate in the fields of mine development, coal plant construction, environmentaltreatment - mine rehabilitation,training- technologytransferin undergroundmining,,ggygg,arranging finance for the development projects, cooperation in trading coal, alumina;research - training and consultancy in term of technique, coal blending Those are some sharing of the coal market in Vietnam as well as theplan ofVinacomin in the coming time.

9 Vinacominhighlyappreciatesandwouldliketo havesupportandclosecooperation Vinacominhighlyappreciatesandwouldliketo havesupportandclosecooperationfrom partners and customers over the world including Japanese partners togetherwith Vinacomin to develop the mining industry in Vietnam harmoniously, stably inthiitftittdtlbfit1010thespiritofcooper ation, you very much!1111