Vinacomin in coal supply talks with Arutmin, Adaro

The Vietnam National Coal and Mineral Industries Group (Vinacomin) is in coal supply talks with South Kalimantan coal miner PT Arutmin Indonesia, a unit of IDX-listed mining giant PT Bumi Resources Tbk.

GM Import/Export division Dinh Quang Trung said in Singapore on Wednesday that Arutmin coal will be used to fuel its proposed 1,200-MW power plant which will become operational in 2013.

Trung said the Company already secured long-term supply of 1 million tonnes per annum (MTPA) from East Kalimantan producer PT Berau Coal. He corrected statement made by other Vinacomin official in Jakarta a week earlier that supply contract with Berau was for 3MTPA. ?3 MTPA is the total requirement for the Vinh Tan power plant,? he said.

He added that Vinacomin is looking to clinch larger contract volume than that of Berau Coal.

He also said that aside from Arutmin, the Company is also in talks with other south Kalimantan coal producer PT Adaro Indonesia.

Vietnam will turn into coal importer starting 2013 and the government has appointed Vinacomin PV Coal, a unit of state oil, gas firm PetroVietnam as sole importers to the country.

Trung said the Company is also looking for other medium coal suppliers. ?We?re looking for miners which can supply coal with CV of 5,500-6,500 kcal/kg, with sulfur below 1% and lower moisture content,? he said.

The Company is also looking for mines to be acquired in Indonesia, he said. (denny)