The Japan Bank for International Co-operation (JBIC) and the Viet Nam National Coal Mineral Industries Group (Vinacomin) signed yesterday a US$150 million loan agreement with the aim of helping Vinacomin ensure an anthracite coal supply source for Japanese partners.
Speaking at the loan agreement ceremony, Tran Xuan Hoa, general director of Vinacomin, told participants that the agreement marked an important step for Vinacomin following the long-term coal export relationship with partners in Japan.
"In a context where natural resources are becoming scarce and in some cases exhausted, energy demand is becoming a serious issue for many economies, and Vinacomin's coal export agreement is an example of a major commitment.
"With average expenditure on mineral exploitation of about $125-150 per tonne, the $150 million facility will meet only a modest amount of the total capital required. Apart from this deal, we will expect further support from JBIC and other Japanese financial institutions in the future," Hoa said.
Vinacomin is one of Viet Nam's leading economic groups, and it plays an important role in providing energy resources for the country. In addition, it also provides the international market with a substantial amount of coal, of which the highest quality anthracite is supplied to the Japanese market.
Major Japanese importers such as Sumitomo Metal and Marubeni have received commitments from Vinacomin to provide long-term anthracite exports of some 1-2 million tonne per year.
"For Vinacomin to meet its long-term plan in 2010 and in the future, substantial and increasing investment would be needed. The current export target for investment and economic development would require a diversity of financial sources. We consider the loan facility with JBIC and the Sumitomo Mitsui Banking Corporation (SMBC) as a good start to long-term capital mobilisation from Japan. This was also our first loan from the Japanese Government fund," said Hoa./.