TKV develops products other than coal.

Việt Nam•23/10/2024

For the Vietnam Coal and Mineral Industry Group (TKV), the main business activity is the mining and processing of coal and minerals. In addition, TKV aims for a strategic development of diversified businesses based on the coal industry.

Electricity production is identified by TKV (Vietnam Coal and Mineral Group) as one of its main business areas, ensuring the Group's crucial role in national energy security. To address the issue of low-quality coal, extend the main product chain, and align with the government 's policy of deep processing of products, TKV has invested in power plants using circulating fluidized bed (CFB) furnace technology. This technology allows for the utilization of low-quality, low-calorific value coal produced by TKV's units.

TKV's Power Corporation currently operates five thermal power plants, with two located in Quang Ninh province: Cam Pha Thermal Power Plant and Dong Trieu Thermal Power Plant. Maintaining the stable operation of TKV's thermal power plants not only supplies electricity to serve socio -economic development and ensure national energy security, but also contributes significantly to the Group's overall growth targets.

Mr. Duong Hong Hai, Deputy Director of Cam Pha Thermal Power Joint Stock Company - TKV, said: Cam Pha Thermal Power Plant is currently the largest power production complex of the Vietnam Coal and Mineral Industry Group, using CFB furnace technology with low-quality coal as the main fuel. The company's electricity production from 2019 to the end of September 2024 accounts for more than 30% of the total electricity production of the Vietnam Electricity Corporation - TKV.

Thanks to increased investment in power development projects, by 2017, the total capacity of TKV's power plants in operation reached 1.73 thousand MW. Electricity production and consumption increased approximately 14 times, from 720 million kWh in 2006 to over 10 billion kWh in 2023, and revenue increased 32 times from 432 billion VND to 14,000 billion VND.

Production Operations Center of Cam Pha Thermal Power Joint Stock Company - Vietnam National Coal and Mineral Corporation (TKV).

To support and serve the proactive production of coal and minerals, meeting the ever-increasing output demands of the economy, the Vietnam Coal and Mineral Industry Group has invested early in modernizing supporting industries such as the production of industrial explosives and mechanical engineering.

Among these, mechanical engineering is an early-established sector closely linked to the history of the Quang Ninh mining region. With 11 units, this is also the supporting sector that makes the most significant contributions to TKV's coal and mineral industry. With its current technical infrastructure, the Group's mechanical engineering units are considered reliable "logistics providers," holding a firm position in Vietnam's mechanical engineering industry and effectively meeting the demands of coal and mineral production.

Units within TKV (Vietnam Coal and Mineral Group) have manufactured hydraulic supports and equipment and spare parts serving coal, mineral, and power production, as well as repairing and restoring equipment for mining and other business sectors, with total revenue increasing from over 1,000 billion VND in 2006 to 3.3 trillion VND in 2023. Particularly, during times of supply crises, the Group's domestically produced mechanical products have contributed to maintaining production stability for coal-based units.

Automated mechanical production lines of Vinacomin Machinery Manufacturing Joint Stock Company.

Alongside coal production, the industrial explosives manufacturing and supply sector has also continuously grown and become one of the industries with relatively large revenue and high efficiency. From 2006 to 2023, production output increased nearly 1.5 times, from 46 to 65.6 thousand tons, and supply output increased 1.3 times from 76 to 102,000 tons, corresponding to a more than 6-fold increase in revenue from 1.2 to over 7.4 trillion VND.

"From a situation where the Corporation and its member units had to import and depend on external sources in terms of both time and quality, the mining chemical units of TKV have now become completely self-sufficient in production. The types of industrial explosives have been diversified, ensuring both safety and suitability to the production conditions of units throughout the Corporation, while also expanding into markets outside the industry such as the cement industry and construction materials production," affirmed Mr. Vu Van Hai, Party Secretary and Director of Viet Bac Mining Chemical Company - MICCO.

Investing in the development of sectors outside of coal, especially supporting industrial products, is considered a sound policy of TKV (Vietnam Coal Corporation) as the supporting industry in Vietnam has not developed to its full potential and TKV always needs to be proactive in securing supply sources to ensure sustainable strategies.

The efficiency of production and business from non-coal sectors has also contributed to increasing revenue for TKV. During the period 2014-2023, the total revenue of the TKV Group was 1.3 trillion VND, an increase of 677,000 billion VND and 109% compared to the period 2004-2013. The total asset value of the entire Group at the time of 2023 increased by more than 112,000 billion VND, equivalent to an increase of more than 67 times compared to 1994. This demonstrates the remarkable growth in the scale of TKV in both breadth and depth of production and business.

In addition to their primary role in supporting coal and mineral production, supporting industries also create numerous jobs and play a crucial role in enhancing the competitiveness of core industrial products and accelerating the industrialization process through both expansion and specialization. In its restructuring roadmap, TKV continues to prioritize investment in supporting industries, creating momentum to further promote the development of core industries in the coming period.

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