Hanoi Times - The Vietnam Coal - Mineral Industries Group (Vinacomin) is to work with partners from Australia and Japan o­n trial use of underground coal gasification (UCG) technology in the Red River coal basin.

To this end, Vinacomin signed a 6.5 million USD project with Australia’s Linc Energy Ltd. and the Marubeni Corporation of Japan in Hanoi .

Of the total investment, Vinacomin contributes up to 60 percent, while the rest is shouldered equally by Linc Energy and Marubeni.
The deal, which goes into effect imediately after the signing, is designed to conduct geological study and UCG at the Tien Dung mine in Khoai Chau district, Hung Yen province, 30 km to the northeast of Hanoi.
Vinacomin chairman Doan Van Kien said if the trial use of UCG technology proves to be successful, it will open up a great prospect for the exploitation of the entire Red River coal basin which is estimated to boast reserves of 20-30 billion tonnes, 5-6 times higher than the northeastern Quang Ninh mine.
The project is scheduled for completion by the end of 2009. The concerned partners are planning to set up a joint venture to use gas bumped out from the targeted mines to produce electricity and diesel o­nce the project yields positive results.