Guangxi Imports Less Coal from Vietnam but More from Indonesia

The coal cross-border trade between Vietnam and China has been suspended since the Ministry of Industry and Trade of Vietnam released the Document no. 4437 abolishing the coal cross-border trade between the two countries starting on June 1st. As a result, the coal imports from Vietnam via Guangxi Zhuang Autonomous Region’s ports climbed only by 2.5% year-on-year to 5.777mt in the first five months of 2008, with the growth rate dropping considerably when compared with the annual growth rate of 40.7% in 2007, announced the Nanning Customs.

However, Guangxi’s coal imports from Indonesia in the same period soared by an unprecedented 1910% over the previous year to 1.049mt. Following this rapid increase, Guangxi’s coal imports climbed by 20.9% over the same period in 2007.

Most of the coal that came from Indonesia was imported through general trade and was delivered to the newly-established Fangchenggang Power Plant, said Zhong Xing, Director of the Border Trade Bureau of Fangchenggang City’s Commercial Bureau. The Fangchenggang Power Plant has inked a long-term coal supply agreement with Indonesia-based PT. Indominco Mandiri Company under the jurisdiction of Thailand’s Banpu Public Company Limited and a transportation agreement with Japan’s Nippon Yusen Kaisha (NYK Line). According to the coal supply agreement, Banpu will provide CLP Fangchenggang Power Plant with more than 2mt of coal annually. The Fangchenggang Power Plant is the first one in China to use primarily imported coal from foreign countries and enjoy stable future operations thanks to the signing of the coal supply and transportation agreements.

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