Trading in black gold: Reviewing 6 provinces with many errors

Theo Vietnamnet |

The Ministry of Industry and Trade has just sent a report to the Prime Minister on the results of the inspection of coal production and trading activities in a number of provinces and centrally-run cities in 2018.

The results show that the management of coal production and trading activities in provinces and cities has had positive changes. However, there are still many shortcomings in coal production and trading in localities.

Typically, in Quang Ninh province: There is overlap between the resource management boundaries of some units under the Vietnam National Coal - Mineral Industries Group (TKV), Dong Bac Corporation with a number of socio-economic development projects of Quang Ninh province ( Waste treatment plant project in Trang Luong commune, Dong Trieu town; Project on concentrated slaughterhouse and poultry slaughterhouse areas, lean pig farming combined with aquaculture in Mong Duong ward, ...) causing difficulties for coal production activities of TKV and Dong Bac Corporation.

In addition, some investment projects to explore, build new mines and renovate and expand mines in the coal industry in the past (2016-2018) have not met the schedule set out in the Plan (the target of the volume of drilled meters reached about 45.6% according to the plan, the annual output of raw coal exploited reached 80-85%...).

In Hai Phong, the city has not issued regulations on the arrangement of port locations and coal warehouses (in 2016 and 2017, the Inspection Team recommended the Hai Phong City People's Committee for this content); most coal gathering and processing sites have land records for misuse. Some coal gathering and processing sites do not have documents on environment, fire prevention and fighting approved/approved by competent authorities according to regulations.

In Hai Duong, according to the inspection and handling results of Hai Duong provincial authorities in 2018: Most of the inspected coal trading enterprises have not updated in a timely manner, clearly understood and fully appreciated the provisions of the law on coal trading. Although the province has a Coal Trading Network Planning, the inspection and control work of local authorities at all levels is still limited...

The report also clearly stated that in Lang Son, there are 3 enterprises in the province participating in coal production and trading activities. In 2018, the Market Management Department inspected and handled 12 cases of illegal coal transportation; imposed administrative fines of VND261 million, and confiscated about 0.4 tons of coal. The provincial police inspected and handled 3 cases of illegal coal transportation; imposed an administrative fine of 24 million VND.

Notably, in Bac Giang, during this inspection, the Inspection Team still noted that the province had not issued regulations on the arrangement of port locations and coal trading warehouses (In 2016 and 2017, the Inspection Team recommended this content to the People's Committee of Bac Giang province). In addition, some inspected enterprises such as Minh Thang Bac Giang Import-Export Joint Stock Company have not yet provided environmental protection documents; Bac Giang Mineral Joint Stock Company has not completed some legal procedures related to land lease, etc.

The cause of the above problems, subjectively recognized by the Inspection Team, is that the coordination between provinces and cities in inspecting and exchanging information related to coal production and trading activities is not synchronous, regular and continuous.

In addition, the arrangement of coal trading locations, port system, and warehouses is not strict and synchronous, leading to the development of over-the-counter coal receiving wharves, coal storage warehouses, not complying with regulations (Hai Duong province) or localities with coal trading activities but have not yet issued regulations on port management, coal trading warehouses (Bac Giang province, Thai Nguyen, Hai Phong city),...

From an objective perspective, according to the Inspection Team, the domestic demand for coal fluctuated not as expected. At some times when the coal industry is facing difficulties due to competition with imported coal and high inventories, the coal industry has to cut investment, reduce mining output to reduce inventories and ensure overall production and business efficiency.

In addition, the illegal profits earned from illegal coal mining and trading activities are large; sanctions for handling illegal coal mining, processing, transportation and trading are not enough to deter,...

Theo Vietnamnet
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