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Wednesday, 30 December 09
COAL PRICE RISE REQUEST DENIED


A proposal by the Viet Nam National Coal and Mineral Industries Group to double the price of coal has been turned down by the Ministry of Industry and Trade.

Deputy Minister Do Huu Hao said the ministry did not agree with the price proposal and would try to come up with a reasonable scheme that would not choke other industries.

Vinacomin had previously suggested a formula to raise the coal price next year, which was 10 per cent less than the export price in accordance with a policy that would permit setting the price of coal at the market rate in 2010.

Under Vinacomin's calculations, the proposed prices would have been between 107 per cent and 249 per cent higher than the current level.

The proposal stirred up the market with a threat that the Viet Nam Electricity Corporation (EVN) would increase electricity prices by 17.1 per cent, as the electricity industry would have been sold the coal at the 249 per cent price increase. To read more VN Business News



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