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News Ha Tien 1 Cement Company plans to import coal from Indonesia

Ha Tien 1 Cement Company plans to import coal from Indonesia

Written by Global Cement staff 23 March 2015
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Vietnam: Ha Tien 1 Cement Company is negotiating with Indonesian partners to import coal from Indonesia, according to the Saigon Securities Incorporated (SSI). Under the current laws, businesses must seek permission for the import of energy products.

Coal accounts for 40% of clinker and 32% of cement production costs. Ha Tien 1 is considering importing coal because the market price has fallen sharply with the drop in crude oil prices. Ha Tien 1 currently buys coal from Vinacomin at US$100/t. The coal price in Indonesia is US$52/t free on board (FOB).

If Ha Tien 1's proposal to import coal gets approval from the government, the cement manufacturer would cut production costs and be able to reduce sale prices and boost its sales. If Ha Tien 1 could import 25% of the total coal it needs for production, it would be able to reduce its production cost by 8%.

Last modified on 25 March 2015
Published in Global Cement News
Tagged under
  • Vietnam
  • Coal
  • Ha Tien 1 Cement Company
  • Import
  • GCW193

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