Emerging Markets Direct

3. Leading Players and

Comparative Matrix
3.1

Local Leading Players

3.1.1 Vietnam National

Industries Group

Coal-Mineral

Vietnam National Coal-Mineral Industries

Group (Vinacomin) is the largest coal
producer in Vietnam. It is also the parent
company of around 30 coal companies
operating in both opencast and underground
mines. Vinacomin was established in
December 2005, a state-owned company
mandated to manage the domestic coal and
minerals market. Vinacomin is licensed to
engage in construction, exploitation,
processing, and export of coal and such
minerals as copper, lead, zinc, aluminum, tin,
chromium, and gemstones and ferrous and
non-ferrous metals. In addition, the group is
allowed to take part in the management of
t her m o- power
plan t s,
eng ineer ing
manufacturing and trade in industrial
explosives. The coal and mineral group
operates as a holding company for the
Vietnam Minerals Corporation (VMC), a
subsidiary of Vinacomin. Vinacomin has a
legal status, a seal, a symbol and
organizational and operational regulations. It
has financial accounts at the State Treasury
and Bank.
In 2009, Vinacomin invested VND25 trillion
(USD1.47 billion) in the development of the
industry, mostly in mining and power
projects. It also expanded its existing coal
mines and undertook coal exploration in
Northern Vietnam. It continued to develop
two bauxite mining projects in the Central
Highlands and invested in a steel mill in Cao
Bang province, a bronze production project
in Lai Cai province, a chromite project in
Thanh Hoa province and an iron ore mining
project in Ha Tinh province. Vinacomin also

built three new power plants, including two

coal-fired plants with combined capacity of
710 megawatts in Quang Ninh province and
a hydroelectric power plant in Dong Nai
province.
The Vietnams government has urged
Vinacomin to pool efforts to fulfill the
governments output target of 100 million
tons of coal in 2015 and to act as a major
im por t er
to
ser ve
t he
n at i on s
industrialization and modernization process
as well as domestic consumption. Vinacomin
will establish a subordinate corporation that
will be in charge of thermo-electric power
projects.
As the market leader in coal production,
Vinacomin is planning to increase coal prices
for big consumers such as electricity,
fertilizer, paper and cement producers.
According to the company, coal prices and
the dollar price have been increasing
steadily, and the prices currently applied to
the big consumers were set at the beginning
of 2010, and they are only 60% of the export
prices. Meanwhile, the domestic sales price
is around 10% lower than the export price.
Vinacomin intends to raise the domestic
sales prices applied to big coal consumers
beginning 2011. This is aimed at
encouraging enterprises to save coal and
increase returns for the coal producer. By
Vinacomins calculations, by 2015 the
production cost will be around VND1.25-1.4
million per ton, while the import price will be
around VND2.24 million per ton. Thus,
production cost in Vietnam by 2015 would be
equal to 62-65% of the current import price.

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Emerging Markets Direct

3.1.2 Ha Lam-Tkv
Company

Coal

Joint

Stock

Ha Lam-Tkv Coal Joint Stock Company (Ha

Lam) is a Vietnam-based company engaged
in the coal mining industry. The company
operates the Ha Lam coal mining field as
well as other mining fields in Ha Long City,
Quang Ninh province.
The main activities of Ha Lam include the
extraction of coal ores and its variants, and
providing supporting services for mining

activities. Ha Lam also provides repair and

maintenance services for mining equipment
and transportation vehicles. The company
trades construction materials and provides
rail, road, and water transportation services.
Ha Lam is also involved in port management
and operations.
Ha Lam is a subsidiary of Vinacomin. The
company has a coal mining capacity of 1.8
million tons a year, and strives for the
quantity, type, and quality of products to
ensure the satisfaction of customers.

Chart 4: Ha Lam Operating Highlights

'000 tons

VND billion

2,000

1,200
Coal Production
Coal Consumption
Revenue

1,000

400
200

599
563

600

821
796

759
624

800

1,755
1722

1,692

800
600

598.9
532.5
400

445.8
354.6

200

220.0
143.7

1,000

864.6
1423

1,203
1093

1,200

1,764
1632

1,400

1,487
1271

1,600

1,778
1621

1,800

1,065.0

146.6

0
2001

2002

2003

2004

2005

2006

2007

2008

2009

Source: Company website

3.1.3 Binh Dinh

Company

Minerals

Joint

Stock

Binh Dinh Minerals Joint Stock Company

(BMC) is a Vietnam-based company
engaged in the mining industry. It operates
mining sites for titanium and other mineral
ores. BMC is involved in the extraction,
processing, and trading of metal ores, as
well as the provision of technical support to
mining operations, namely testing and
analysis services. Other business activities
are trading supplies, equipment, and
machinery for the mining industry.

The company was established in 1985, and

was one of the first reputable companies in
the minerals field in Binh Dinh province and
Vietnam as well. Main products of the
company are ilmenite, zircon flour, rutile,
monazite, magnetic, titanium slag, and pig
iron. The table below displays the content
and quantity of products:

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Emerging Markets Direct

Table 10: BMC Products

Products Content

Quantity

Ilmenite

TiO2 - 52% min; Fe2O3 - 13% max; FeO - 30% min; Cr2O3 - 0.05%
max; V
V205
0.12%
205 - -0.12%

65,000 Mt/yr

Zircon
flour
Flour

ZrO2
ZrO
65% min;
min; Fe
Fe2O3
0.1%;TiO
TiO2
- 0.3%
2 -- 65%
2O3 - -0.1%;
2 - 0.3%

2.5 Mt/yr

Size: 44 mm max
Rutile

TiO2
TiO
85%
2 -- 85%

1.2 Mt/yr

Monazite

ReO - 57% min

400 Mt/yr

Magnetic

Fe3O4
Fe
85%min
min
3O4 - -85%

2 Mt/yr

Titanium
slag
Slag

TiO2
TiO
90% min
min
2 -- 90%

12,000 Mt/yr

Pig Iron
iron

Fe: 97% - 98%

7,000 Mt/yr

Source: Company website

Production of ilmenite has been increasing at

a rapid pace, from around 30,000 metric tons
a year in 2004 to an estimated 65,000 metric
tons per year in 2010. All products of BMC
meet the export quality standards of Japan,
Korea, Malaysia, and China. According to
Circular 08 which bans all exports of titanium
products, BMC was given an exception
under the official letter No. 1707/VPCP-KTN
dated 19 March 2009, approved by the
Deputy Prime Minister to continue ilmenite
exports to the end of 2010.
3.1.4

manganese ores, and other derived

products. Other activities include the trading
and processing of manganese-based
products, dolomite ores, iron ores, and
additives for steel manufacturing activities.
MMC is also engaged in the provision of
repair and maintenance services for road
transportation vehicles. The companys
clients come from the domestic market, as
well as China and several other markets.

Manganese Mineral JSC

Manganese Mineral JSC (MMC) is a mining

company in Vietnam based-in the Ha Tinh
province. Its main activities comprise the
mining, processing, marketing, and trading of

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