ABOUT VIET BAC MINING INDUSTRY HOLDING CORPORATION (VVMI)

A BRIEF INTRODUCTION TO VIET BAC MINING INDUSTRY HOLDING CORPORATION (VVMI)

VVMI's operational objective is to "Maximize reasonable profits for the Corporation, increase returns for shareholders, contribute to the State budget, ensure the rights and interests of employees, and continuously develop Viet Bac to grow stronger. To build Viet Bac Mining Industry Holding Corporation into:

- One of TKV's member companies with modern and highly specialized technology and management models.

- A streamlined and rational organizational structure, enhancing labor productivity, product quality, and competitiveness.

- An efficient and sustainable operation; maintaining a role in ensuring the supply of coal products for TKV and cement products for the market.

- Harmonious relationships within the Corporation, ensuring the interests of shareholders and employees."

In recent years, Viet Bac has consistently been recognized and ranked among the top 500 enterprises with the largest revenue in Vietnam. For its outstanding achievements and significant contributions to the cause of national construction and development, Viet Bac Mining Industry Holding Corporation has been honored by the Party and State with the title "Hero of Labor in the Renovation Period."

VVMI affirms its long history in coal mining, processing, and trading, along with its outstanding advantages in cement production. With a comprehensive investment strategy for expansion and development, and with the support of the Vietnam Coal - Mineral Industries Group, VVMI is poised for continued success.

History of establishment and development

- Predecessor: Coal Company III, established on July 1, 1980, under Decision No. 42 DT/TCCB-3 dated June 17, 1980, by the Minister of Electricity and Coal.

- June 19, 1993: The Minister of Energy re-established and renamed Coal Company III to Noi Dia Coal Company under Decision No. 356NL-TCCB-LD.

- October 1994: Noi Dia Coal Company was transferred from an enterprise directly under the Ministry of Energy to a member unit of Vietnam National Coal Corporation.

- November 25, 2005: The Minister of Industry issued Decision No. 3883/2005/QD-BCN approving the plan to convert Noi Dia Coal Company into Noi Dia Coal One Member Limited Liability Company, operating under the parent company - subsidiary model.

- January 1, 2006: Noi Dia Coal One Member Limited Liability Company officially commenced operations under the new management model.

- November 8, 2006: Noi Dia Coal One Member Limited Liability Company was renamed to Viet Bac Mining Industry One Member Limited Liability Company - TKV.

- December 13, 2010: The Minister of Industry and Trade issued Decision No. 6568/QD-BCT establishing the parent company - Viet Bac Mining Industry Corporation - Vinacomin.

- January 1, 2011: Viet Bac Mining Industry Corporation - Vinacomin officially commenced operations.

- Equitization: Viet Bac Mining Industry Corporation - Vinacomin, under Vietnam Coal - Mineral Industries Group, was equitized under Decision No. 132/QD-TTg dated January 26, 2015, of the Prime Minister, becoming Viet Bac Mining Industry Holding Corporation -Joint Stock Company, operating under the parent company - subsidiary model.

- October 1, 2015: Viet Bac Mining Industry Corporation - Vinacomin officially transitioned from a state-owned enterprise to a joint-stock company.

BUSINESS LINES OF VIET BAC MINING INDUSTRY HOLDING CORPORATION

1. Coal production, processing, and trading

Throughout nearly 40 years of establishment and development, Viet Bac Mining Industry Holding Corporation has identified coal production, processing, and trading as one of its key business areas.  Despite initial limitations and challenges in coal mining, processing, and trading due to skill levels and terrain, the spirit of the miners, overcoming difficulties and relying on their own strength, coupled with the "Discipline - Solidarity" spirit inherent in the mining tradition, has propelled them forward. Coal production, processing, and trading have become Viet Bac's leading strength, with an output exceeding 2 million tons per year.

Three member companies in the field of coal production and processing, Khanh Hoa Coal Company, Na Duong Coal Company, and Nui Hong Coal Company, ensure a sufficient supply of coal for customers such as Na Duong, Cao Ngan, and An Khanh thermal power plants. In the coming years, Viet Bac Mining Industry Holding Corporation aims to maximize open-pit coal mining areas, develop deep underground coal mining projects at Khanh Hoa Coal Company, and expand and increase capacity at the Na Duong coal mine across all three mines. These initiatives aim to create jobs for workers and increase dividends for the Corporation's shareholders.

Thanks to its experience, infrastructure, equipment, and a diligent and highly skilled workforce, Viet Bac Mining Industry Holding Corporation is confident that coal production, processing, and trading will continue to develop and serve as a solid foundation for expanding and developing other business areas in the future.

2. Industrial Production and Construction Materials

Based on the policy of "multi-sector business on the foundation of coal production," Viet Bac Mining Industry Holding Corporation has been developing in the field of industrial construction materials, with cement production as its main focus. Three member companies, Quan Trieu Cement, Tan Quang Cement, and La Hien Cement, have gradually established their brands. Their combined annual contribution to the Vietnamese cement market is estimated at 2.5 million tons, with a diverse range of products including PCB30, PCB40, and others. This contributes to meeting the domestic demand for construction materials, especially in the midland and northern delta provinces.

By applying new-generation cement production technology combined with modern, continuous, and closed production lines from raw material extraction to finished products using the dry process, all three factories under the Corporation continuously improve quality, ensuring stability and meeting the stringent requirements of the domestic market. This is achieved while also ensuring fuel efficiency and environmental protection.

With the goal of "VINACOMIN Cement, a firm belief, building all constructions," the staff and workers of all three factories, Quan Trieu, Tan Quang, and La Hien, are determined to further develop the "VINACOMIN Cement" brand, helping to create jobs for thousands of local workers, ensuring social stability, and contributing to the overall development of the country.

3. Trading of Materials and Equipment

Along with the two main business areas of coal production and trading, and industrial construction materials, Viet Bac Mining Industry Holding Corporation also focuses on investing and developing the trading of materials and equipment.

The Production and Trading of Materials and Equipment Joint Stock Company, a member company of the Corporation, provides this service with three main product lines: materials, spare parts, goods for production and daily life; cement bags; and furnace roof mesh.

Over 26 years of establishment and development, the Production and Trading of Materials and Equipment Joint Stock Company is proud to be a member of Viet Bac Mining Industry Holding Corporation. The company has built a brand in the domestic market for trading materials and equipment, exceeding its assigned targets and receiving numerous medals, awards, and noble emulation titles from the State and higher authorities. To date, the company has invested in expanding and upgrading its cement bag production line with a capacity of 20 million bags per year. Additionally, the company has invested in a continuous steel mesh knitting machine.

In the future, the trading of materials and equipment promises to further develop thanks to the determination and sound strategies of the Board of Directors and the close guidance of the Corporation.

4. Mechanical Repair

In the field of mechanical repair, two member companies, Mechanical and Pressure Equipment Joint Stock Company and Viet Bac Mining Mechanical Joint Stock Company, are leading the way in manufacturing and repairing mechanical equipment.

Mechanical and Pressure Equipment Joint Stock Company specializes in installing pressure equipment such as various types of boilers with capacities up to 2,000 kg of steam per hour, steam bath and drying systems, and more. In addition to pressure-related products, the company also focuses on manufacturing and supplying other mechanical products, such as:

- Conveyor belt frame systems; standard and non-standard prefabricated steel buildings.

- Steel structures

- Various types of water and liquefied gas storage tanks.

- Installation of mechanical works.

- Flanged welding pipe systems for water and steam supply.

- Coal hauling wagons.

- SKAT, SGB scraper conveyors, etc.

Established in 1968, Viet Bac Mining Mechanical Joint Stock Company meets the demands for medium and major repairs of heavy transport vehicles, mining equipment, manufacturing of auto parts, underground mining equipment parts, cement production accessories, thermal power accessories; manufacturing and installation of steel structures, road freight transport, and cargo lifting and unloading.

Today, the two member companies in the field of mechanical repair under the Corporation continuously improve and innovate their technology and service quality to meet the new requirements of the mechanical industry.

5. Hotels and Tourism

Viet Bac Mining Mechanical Joint Stock Company has been actively investing in and developing the hotel and resort tourism sector in recent years.

Two member companies operating in this field are Thai Nguyen VVMI Hotel Joint Stock Company and the Coal Industry Recuperation Center. Their motto is to continuously expand and improve service quality to meet the demanding requirements of the domestic tourism and resort market. In addition to meeting the recuperation needs of employees throughout the Corporation, Thai Nguyen VVMI Hotel Joint Stock Company and the Coal Industry Recuperation Center are attractive destinations for customers due to their excellent service quality.