TKV strives to reach the third quarter production plan

Entering the third quarter of 2025, the weather in Quang Ninh has become complicated with heavy rain lasting for many weeks, directly affecting coal mining, transportation and processing. However, overcoming difficulties, underground and open-pit mines of the Vietnam National Coal - Mineral Industries Group (TKV) have maintained a stable production pace, many units have completed their quarterly plans well, creating an important foundation for achieving the yearly target.

According to TKV's report, the coal consumption market in the third quarter of 2025 is facing many obstacles, with high coal inventories (over 12 million tons). The main reason is that thermal power plants - TKV's main coal consumers - have sharply reduced demand due to heavy rains, full hydroelectric reservoirs, and high hydroelectric power generation capacity. However, up to this point, TKV has still directed the Group's production units to maintain the mining pace, creating a ready source of coal to meet demand when the market shows signs of recovery.

Mr. Nguyen Minh Tuan, Deputy Director of Quang Hanh Coal Company - TKV said: We are still operating production according to the plan assigned by the Group, with the goal of achieving the growth target of 8% in 2025. Although coal consumption output has decreased by about 2% compared to the third quarter plan, the Company is still implementing the Group's direction of not adjusting output down, maintaining the pace of production labor. The jobs and income of Quang Hanh miners are not affected, many units maintain a group of miners with high income of over 30 million VND/month; working conditions of workers continue to improve.

In the context that mining units are maintaining production pace, downstream units of TKV are also making great efforts to maintain coal flow to the market.

To complete the production and business plan and tasks to meet the demand for sufficient coal supply for the market, especially coal for electricity production, since the beginning of 2025, Cam Pha Port and Logistics Company has taken advantage of favorable weather conditions, coordinated with coal production units to arrange to receive clean coal from mines and imported coal for processing and blending to ensure consumption.

Mr. Cao Van Chuan, Deputy Director of the Company, said: In the first 8 months of 2025, the Company has consumed approximately 70% of the 2025 plan. Currently, it is the rainy season, while waiting for the consumption market to recover, the Company is implementing plans to preserve coal quality according to the process; maximizing the capacity of the port and warehouse system, organizing coal blending and processing to meet market demand.

Cam Pha Port and Logistics Company ensures coal quality management at warehouses and storage yards.

At Da Bac Logistics Company, many solutions to reorganize the production line, mechanize the loading and unloading process, and reduce costs have been vigorously implemented. In particular, the unit focuses on mixing high-quality coal to meet the specific needs of each cement, fertilizer, and construction material factory...

Not only fulfilling contracts signed with domestic customers, the unit also boosted exports to some traditional markets, contributing to reducing inventory pressure. Thanks to this initiative, although sales revenue in the third quarter decreased compared to the same period, it still basically followed the adjusted plan.

The efforts of coal production and trading units have helped the market avoid a breakdown in the coal supply chain, maintain its image and reputation with customers, and gradually adapt flexibly in the context of an unexpected decrease in domestic coal consumption.

It can be said that the third quarter of 2025 is the most difficult period for the coal industry in many years. Prolonged heavy rains not only disrupt transportation and loading activities, but also affect customer demand. For the electricity industry - accounting for over 70% of coal consumption - the situation of full hydroelectric reservoirs has forced many thermal power plants to reduce load or temporarily stop mobilizing. This leads to a decrease in coal consumption for electricity in the quarter by millions of tons compared to the plan.

Notably, this decline is entirely due to objective factors, beyond the ability of TKV to adjust. Therefore, while mining output remains stable, coal consumption has decreased, leading to increased coal inventories. Coal storage yards of many units have had to expand, strengthen covering solutions, spray water to suppress dust, and ensure environmental safety.

Difficulties in coal consumption also affect the cash flow, financial planning and cost balance of the entire Group. Some units face great pressure in salary payment, production maintenance costs and equipment investment. However, thanks to the Group's strong direction, the units have proactively balanced and reduced costs reasonably, ensuring stable lives for workers.

From the reality of the third quarter, it can be seen that the coal industry is facing an urgent need to diversify its consumption market, increase the proportion of industrial customers outside of electricity, expand exports and at the same time have more effective coordination mechanisms with the electricity industry to ensure long-term balance.

Hoang Yen

Source: https://baoquangninh.vn/tkv-no-luc-ve-dich-ke-hoach-san-xuat-quy-iii-3375167.html