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Authorities seize 32,000 tonnes of coal
Authorities in the northern province of Quang Ninh have impounded around 32,000 tonnes of coal smuggled across the border in the first six months of this year, estimating the value of the coal at more than VND10.5 billion (US$589,000).
They have also busted around 240 illegal coal mines, confiscated 30 vessels used for smuggling coal by water, and 450 other vehicles.
Up to 10 million tonnes of coal were smuggled across the border to China annually during 2006-08, causing losses of VND4.5 trillion ($281.25 million) to the State coffers, provincial leaders said, vowing to crack down on groups or individuals found engaged in illegally mining or transporting coal.
The year 2008 alone saw 57 cases, with 260 individuals brought to court. Dozens of coal workers in Quang Ninh had been sacked or punished in recent months, they said, with seven employees from Mao Khe Coal Co Ltd and four from the Dong Vong Co punished.
Domestic coal prices, subject to Government price controls, were 30 per cent lower than the prevailing export price, driving an increase in illegal mining and smuggling, said Pham Minh Chau, head of the export department of the Viet Nam National Coal and Mineral Industries Group (Vinacomin).
The Government last month agreed to allow Vinacomin to gradually increase domestic coal prices in an effort to limit smuggling.
Vinacomin was expected to produce a maximum of 61.4 million tonnes of coal annually by 2015 and import another 25.5 million tonnes to supply coal-fired power plants nationwide.
Viet Nam, with an estimated 42 billion tonnes in coal reserves, exported more than 13.5 million tonnes of coal in the first seven months of this year.
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