TKV saves energy to improve competitiveness

In the context of energy security posing many challenges, Vietnam National Coal - Mineral Industries Group (TKV) has not only fulfilled its mission of supplying coal to the economy but also pioneered in implementing solutions for energy saving and efficiency. From technological innovation, optimizing production processes to promoting employee initiatives, TKV has been considering energy saving as a key driving force to enhance competitiveness, while realizing the goal of green and sustainable development.

The underground pumping system in the mine of Vang Danh Coal Joint Stock Company is operated to ensure safety and production efficiency.

Replication of pilot models

On average, each year TKV produces about 35-40 million tons of raw coal, accounting for 85% of the country's coal mining output; imports 5-10 million tons; consumes 35-45 million tons of commercial coal, mainly for electricity production. With such a large scale, the use of energy saving and efficiency has become a mandatory requirement to both improve productivity and quality and reduce production and business costs. Recently, many units of TKV have synchronously deployed energy saving solutions, initially bringing clear results, helping to limit waste and increase benefits for businesses.

Typically, Vang Danh Coal Joint Stock Company has developed and implemented a plan for economical and efficient energy use since the beginning of 2025, with specific directives and procedures applied to each department. Propaganda and awareness raising activities are carried out regularly, considering this a key factor to turn energy saving into a daily voluntary action.

Along with propaganda, the company applies many technical measures: Reasonable operation arrangement, limiting high-capacity equipment during peak hours, not letting machines run at low or no load, maintaining a stable cosφ coefficient. In particular, 21/28 central pumps have been installed with 6kV explosion-proof soft starters, fan stations, well conveyor lines, and upper shafts are all equipped with frequency converters and soft starters. More than 200 low-voltage frequency converters and soft starters have been installed for equipment in the mine and the selection plant, helping to reduce power loss and stabilize the grid.

Solar power system is installed and used at Vang Danh Coal Joint Stock Company office area, contributing to energy saving and environmental protection.

The solar power system put into operation in September 2023 also continues to be effective. In 2024, the system provided 75,272kWh; in the first 8 months of 2025, it reached nearly 50,000kWh. The company plans to expand the installation at the headquarters and Lan Thap production area in 2026, affirming its development orientation associated with renewable energy.

Thanks to synchronous solutions, the energy saving results at Vang Danh Coal are very positive. In 2024, the total electricity consumption reached 86.59 million kWh, lower than planned; the electricity consumption rate reached 26.64 kWh/ton, saving nearly 1.93 million kWh (equivalent to 3.3%). In the first 7 months of 2025 alone, the company saved an additional 1.52 million kWh. Along with that, the strict control of DO oil and gasoline fuel brought about clear results. In 2024, 1.61 million liters of DO oil were consumed, a decrease of 190,000 liters compared to the plan. Measures such as fuel tank seals, actual capacity allocation, 24/7 camera and GPS monitoring help manage transparently, limiting the loss of DO oil and gasoline.

Mr. Pham The Hung, Deputy Director of Vang Danh Coal Joint Stock Company, emphasized: Energy saving not only brings economic efficiency but also plays an important role in reducing greenhouse gas emissions and improving working environment conditions in the mine. In 2025, the Company aims to save at least 2% of electricity consumption, while continuing to reduce the DO oil rate through investing in new technology and gradually replacing outdated equipment.

As one of the largest open-pit mines in the country, Cao Son Coal Joint Stock Company annually excavates over 50 million m³ of earth and rock and exploits over 3 million tons of raw coal. Currently, the Company is managing and operating over 402 specialized diesel-powered motorbikes, along with conveyor systems, drainage pumps, electric excavators and large-capacity electric drilling rigs. The massive amount of equipment makes the Company consume over 80 million liters of diesel and about 40-50 million kWh of electricity each year. Energy costs alone account for 65% of the product cost structure, so energy saving is considered the "key" to improving the production and business efficiency of the unit.

Workers of Cao Son Coal Joint Stock Company check and maintain mechanized equipment for production.

Mr. Pham Quoc Viet, Director of Cao Son Coal Joint Stock Company, affirmed: In the context of energy costs accounting for a large proportion, we identify saving as the key solution to reduce costs and increase competitiveness. Saving here is not only reducing costs but also aiming at green and sustainable production. Based on that viewpoint, in recent years, the Company has synchronously deployed many solutions: Installing soft starter cabinets, frequency converters for pump motors and electric excavators; applying economical operating modes by making the most of off-peak hours; improving the reactive power compensation system; lowering the discharge position of the drainage pump system to reduce power consumption.

Along with technical solutions, Cao Son Coal focuses on raising awareness of saving among all workers. Small things such as turning off equipment when not needed, operating according to the correct process, taking advantage of capacity... have become routine, helping to save more than 3.2 million kWh of electricity (over 5 billion VND) in the 2023-2024 period. In 2025, the Company aims to reduce at least 2% of electricity consumption. With Diesel fuel, the Company decentralizes management to each driver, linking the responsibility of saving with income; at the same time, applying online shift handover software, GPS monitoring and sensors for 320 devices. Thanks to that, in the past two years, nearly 1.2 million liters of oil (over 22.6 billion VND) have been saved and in 2025, it strives to reduce another 700,000 liters (12 billion VND). Notably, Cao Son Coal links energy saving with innovation in management technology. Modern operating system, 24/7 online monitoring and cameras throughout the mine help control equipment and fuel, while improving safety, creating "double benefits" from the "3 reduction" model: Cost, consumption and emissions.

TKV currently manages nearly 70 enterprises operating in the fields of coal, minerals, electricity and industrial explosives. These are enterprises in the group of key energy consumers of the country. Over the years, the Group has implemented many synchronous and innovative solutions to save energy, thereby contributing to reducing production costs, improving business efficiency and spreading the spirit of using energy economically and effectively throughout the system.

Determined to realize the strategy

Rising energy prices and increasing competitive pressure force the coal industry to change its management mindset. For TKV, energy saving is not only a solution to cope with difficulties but also a key strategy to improve production efficiency, reduce costs and move towards the goal of green and sustainable development.

In the period of 2020-2024, the Group will maintain a stable output of raw coal at 38-40 million tons/year and commercial coal at 37-42 million tons/year. Along with maintaining output, TKV focuses on solutions for efficient use of resources such as selecting appropriate equipment to increase the recovery rate of underground coal, improving the load-carrying capacity to reduce the size of protective pillars, exploiting and recovering coal at protective pillars, optimizing the technological diagram and recovering resources of suitable quality. Thanks to that, the coal recovery coefficient in underground mining has been significantly improved. The underground coal loss rate has decreased from 19.5% in 2020 to 19.1% in 2021, 19% in 2022 and 18.9% in 2024. At the same time, the clean coal recovery rate has also continuously increased, staying at 91% in the 2020-2022 period, increasing to 91.1% in 2023 and reaching 92.9% in 2024. These results affirm TKV's efforts in exploiting resources economically and efficiently.

Coal production site of Cao Son Coal Joint Stock Company.

On March 17, 2025, the Prime Minister issued Decision No. 625/QD-TTg approving the Development Strategy of Vietnam National Coal - Mineral Industries Group (TKV) to 2030, with a vision to 2045. One of the important pillars identified is the strong application of science and technology, mechanization, automation and digital transformation to improve production and business efficiency, save energy and develop sustainably.

This strategy identifies specific targets: In the 2021-2030 period, revenue will reach 130-200 trillion VND/year, profit 3,500-6,000 billion VND/year; in the 2031-2045 period, revenue will increase to 200-300 trillion VND/year, profit 6,000-7,000 billion VND/year. To realize the above targets, TKV determined that it cannot rely solely on expanding exploitation but must rely on the foundation of energy saving, improving efficiency, and reducing production costs.

TKV has set a specific target of saving 5-7% of total energy consumption by 2025, reducing power loss to below 6.5% and ensuring that 100% of key units apply the energy management system as prescribed. In the period of 2026-2030, the target will be raised to 8-10% energy saving and power loss below 6%. Faced with the pressure of high input material prices while the selling price of coal for electricity has not been adjusted, coal industry units are forced to implement a "belt-tightening" policy to ensure business efficiency. Cost reduction not only helps TKV maintain profits but is also in line with modern and effective management orientation.

Mr. Nguyen Van Tuan, Deputy General Director of Vietnam National Coal - Mineral Industries Group, said: To realize this goal, TKV has implemented many synchronous solutions. First of all, strict management from the root: Companies must develop annual energy saving plans, assign costs to each construction site and workshop, monitor and periodically accept, and attach to a transparent reward and punishment mechanism. At the same time, TKV innovates technology and equipment such as using large trucks of 91-96 tons combined with 10-12m³ bucket excavators to increase productivity and reduce fuel consumption, install transformers suitable for capacity, apply frequency converters to large engines, gradually replace old equipment with energy-saving equipment, convert lighting systems to LED lights, and automate screening and processing lines. In operation, mines apply smart operation: Do not run drainage pumps during peak hours, control ventilation properly, detect and fix air duct problems in time to maintain efficiency.

Another important direction is to promote digital transformation. The application of Big Data, AI, IoT along with SCADA and Wide SCADA systems helps to optimize every step from mining, transportation to processing and consumption. UAV technology is also used in 3D topography measurement at open-pit mines, providing accurate data for management and energy saving. In addition, TKV focuses on building sustainable energy infrastructure, converting from automobile transportation to conveyor belts, railways, and waterways, thereby significantly reducing fuel costs.

Workers of Hon Gai Coal Company operate the automatic system serving the construction of the underground mining project of the Ha Rang mine expansion.

The Group also promotes the localization of mechanical equipment, many product groups have reached over 90%. This not only reduces import dependence but also makes maintenance and repair more proactive, while improving energy efficiency. Along with technology, TKV builds a culture of energy saving among all staff, workers and employees, considering awareness and saving habits as the foundation for realizing the goal of green growth and sustainable development.

In particular, TKV seriously implements the National Target Program on economical and efficient use of energy. Units conduct periodic energy audits every three years to come up with appropriate solutions. The Group also invests in a series of equipment and technologies such as new generation low-loss transformer stations, automatic voltage adjustment equipment under load, self-adjusting transformers, and upgrading voltage from 660V to 1140V for large-capacity equipment in the mine. These solutions help reduce power loss, ensure power quality, improve power factor, and save operating costs.

Pham Tang

Source: https://baoquangninh.vn/tkv-tiet-kiem-nang-luong-de-nang-cao-suc-canh-tranh-3375877.html