Development strategy of Vietnam National Coal - Mineral Industries Group to 2030, vision to 2045

Developing Vietnam National Coal - Mineral Industries Group into a strong economic group

The overall objective of the Strategy is to develop the Vietnam National Coal - Mineral Industries Group (TKV) into a strong economic group, contributing an important role to the development of the state economy; maintain a key position as one of the three pillars of energy, contributing to ensuring national energy security; exploit sustainably, have a long-term sustainable investment plan and be consistent with Vietnam's commitment to net zero emissions by 2050.

The Group operates according to market mechanisms, taking economic efficiency as the main evaluation criterion, being autonomous, self-responsible, and competing equally with other economic sectors according to the provisions of law.

Building a modern and highly specialized organizational, management and governance model, applying advanced science and technology, promoting the application of mechanization (CGH), automation (TĐH) and digital transformation (CĐS); developing high-quality human resources, promoting the tradition of "Discipline and Unity"; gradually implementing innovation and creativity in production and business based on the foundation of the main business lines and related lines according to the organization and operation charter of the Group.

Orientation of development of production and business sectors

According to the development orientation of the coal industry : Exploration work must always be one step ahead; exploration and assessment of existing coal reserves to ensure reliability for mining design combined with promoting exploration of new mines to prepare reliable resources for stable and long-term development of the coal production sector of TKV in particular and the coal industry in general.

Innovate and apply advanced exploration technology, especially for areas with complex geological conditions and great depth; continue to seek research partners to select appropriate exploration technologies and methods to explore the Red River Delta Coal Basin.

Focus on developing and maintaining large-capacity underground mines according to the criteria of "Green mine, Modern mine, High-capacity mine, Safe mine". Develop open-pit mines in the direction of increasing the stripping coefficient, in accordance with economic, technical and related planning conditions; carry out the dumping of soil and rock in the direction of maximizing the use of internal dumps.

Connect small-production mines with suitable geological, geographical and infrastructure conditions into large-production mines. Safely and economically exploit and effectively recover coal resources assigned for management, including coal reserves in the areas of protective pillars of works and the remaining lost coal resources after the end of underground mining, on the basis of ensuring production and business efficiency. Develop mining output in a sustainable and effective direction...

Orientation for development of mineral and metallurgical industry: Develop TKV's mineral industry on par with the coal industry on the basis of strengthening exploration and development of resources, investing in the development of new mines, combined with solutions to diversify ore/concentrate supply sources (cooperation in exploitation and import) to provide enough raw materials for mineral processing plants to operate stably and sustainably; maintain effective production of invested mineral exploitation and processing complexes.

TKV is in charge of everything from bauxite exploration and exploitation to the development of the alumina - aluminum production industry, creating a driving force for the development of Vietnam's aluminum industry and contributing to economic development in the Central Highlands provinces on the basis of investing in expanding the capacity of the Tan Rai and Nhan Co aluminum complexes to about 2.0 million tons of aluminum/year/complex; investing in the Dak Nong 2 bauxite - aluminum - aluminum complex with a capacity of 2.0 million tons of aluminum/year, 0.5 million tons of aluminum/year and the aluminum electrolysis plant project in Lam Dong province with a capacity of 0.5 million tons/year. In particular, striving to complete the Dak Nong 2 aluminum electrolysis plant project in 2030, to increase the value of deep processing, contributing to building Dak Nong province into a national aluminum industrial center.

Deep processing of minerals to create products of high economic value; research and investment in a steel billet factory project in Ha Tinh (in case the Thach Khe iron mining and processing project is permitted by competent authorities to continue implementation), a factory producing total rare earth oxide/separate rare earth, superfine zircon, pigment, sponge titanium/metal titanium and deep-processed products from copper cathode.

Promote research, transfer, acquisition, application of advanced science and technology, conversion of technology and equipment in the stages of exploration, exploitation, mineral processing, environmental protection for each group/type of mineral. For the minerals of the Central Highlands bauxite, Binh Thuan titanium, Lai Chau rare earth, Thanh Hoa chromite, copper mines in Lao Cai... invest in developing and forming mining complexes associated with processing, applying advanced technology and modern equipment. Rehabilitate the environment of mineral mines after the end of exploitation in the direction of integrating environmental regeneration and restoration combined with the development of green projects, socio-economic development and environmentally friendly economic sectors.

Diversify mineral products to suit the needs of the consumer market, expand investment forms, research and investment cooperation; maximize the value of the Coal - Minerals - Metallurgy interconnected model to form a TKV ecosystem in line with the circular economic development orientation: Coal - Electricity - Metallurgy...

Orientation for development of electricity industry: Renovate, upgrade, and innovate technology of existing coal-fired power plants to take advantage of low-quality coal resources, and complete investment projects included in Power Plan VIII.

Implement fuel conversion according to a suitable roadmap associated with production modernization, advanced power plant management; apply emission reduction technologies, green technologies in line with the world's technology development trends. Orientate to implement fuel conversion to biomass and ammonia for coal-fired thermal power plants that have been in operation for 20 years when the cost is suitable and there is a full legal corridor...

Orientation for development of industrial explosives and chemicals : Continue to develop core products such as industrial explosives, explosive precursors and service product chains. Develop production of some other explosive precursors such as sodium nitrate (NaNCh)... Research production, application to gradually replace imported raw materials and supplies (ammonia-NH3...) to serve production lines: ammonium nitrate, underground emulsion, bulk emulsion, green energy conversion...

Investing in fertilizer production, participating in the production chain supplying basic chemical products used in the mining and mineral processing industry, petrochemicals; water treatment industry, producing detergents, liquid caustic soda, some other auxiliary products for agriculture and accompanying preparations to bring chemical revenue closer to the main product.

Expanding the export market for industrial explosives, explosive precursors and drilling, blasting and mining services to regional countries such as Laos, Cambodia, Indonesia...

Orientation of business model and organization development of TKV

Orientation of TKV's business model development: Linking business with production to create a value chain of coal - mineral mining, processing, electricity production, metallurgy, industrial explosives, logistics services in line with the circular economic model through the use of renewable energy, eliminating the use of toxic chemicals, reusing and recycling waste (waste soil and rock, treated wastewater, industrial waste...) as raw materials for infrastructure and industrial development; along with extensive development, enhancing in-depth development by applying new, advanced and modern technology. Gradually moving towards connecting the 3 main production and business sub-sectors of TKV: "Coal - Electricity - Metallurgy".

Orientation for developing the organizational model of the Parent Company - TKV: Continue to operate under a mixed operation model. The Parent Company - TKV both performs the function of financial investment and directly conducts production and business activities; assigns tasks to the processing, warehousing, delivery and coal trading units of the Parent Company - TKV to be proactive in coal consumption and coal import; implements the equitization roadmap of the Parent Company - TKV at an appropriate time according to the progress approved by the Government.

Orientation for developing the organizational model of member companies: Maintain the ratio of holding 100% of charter capital or holding controlling shares in subsidiaries operating in main business fields and related to the main business lines.

Reorganization to improve the operational efficiency of member units: Merge to increase the scale of some coal production joint stock companies with adjacent geographical locations and resources; reorganize research institutes according to the Research - Manufacturing - Technology Transfer model; reorganize investment consulting, design, supervision and project management units in a streamlined and professional direction; reorganize geological exploration companies to form strong enough companies to carry out survey and exploration activities for coal and minerals at home and abroad.

Divestment of investments in subsidiaries and affiliated companies that are ineffective or not suitable for development orientation in the coming period.

Phuong Nhi