Approval of TKV Development Strategy to 2030, with an Orientation to 2045

General Objectives of the Strategy:

1. Develop the Vietnam National Coal-Mineral Industries Corporation (TKV) into a strong economic corporation, playing a crucial role in the development of the state economy.

2. Maintain its key position as one of the three pillars of the energy sector, contributing to ensuring national energy security.

3. Conduct sustainable mining operations with long-term investment planning in line with Vietnam’s commitment to achieving net-zero emissions by 2050.

The corporation operates under market mechanisms, with economic efficiency as the primary evaluation criterion, ensuring autonomy, self-responsibility, and fair competition with other economic sectors in accordance with the law.

Build a modern, highly specialized organizational, management, and governance model, applying advanced science and technology, and promoting mechanization (CGH), automation (TĐH), and digital transformation (CĐS). Develop a high-quality workforce, upholding the tradition of "Discipline and Solidarity." Gradually implement innovation and creativity in production and business activities based on core industries and related sectors, by the Group's charter and operational regulations.

Development Orientation for Production and Business Sectors:

1. Coal Industry Development Orientation

- Exploration as a Priority: exploration must always take the lead, ensuring reliable assessments of existing coal reserves to support mining design. Strengthen exploration of new mines to secure a stable and long-term resource base for TKV’s coal production and the coal industry as a whole.

- Advanced Exploration Technology: Innovate and apply advanced exploration technologies, especially in geologically complex and deep areas. Continue seeking partners to research and select suitable exploration technologies and methods for surveying the Red River Coal Basin.

- Sustainable and Efficient Mining:

+ Underground Mining: Develop and maintain large-output underground mines based on the principles of "Green Mine, Modern Mine, High-Output Mine, Safe Mine."

+ Open-Pit Mining: Improve the stripping ratio according to economic, technical, and planning conditions while optimizing waste disposal through maximum utilization of internal dump sites.

- Mine Integration and Resource Optimization: Consolidate small-output mines with suitable geological, geographical, and infrastructure conditions into large-scale mines for improved efficiency. Ensure safe, economical, and efficient extraction of assigned coal resources, including reserves in protective pillars of infrastructure and remaining coal after underground mining operations have ceased. Develop sustainable and efficient coal production strategies, ensuring long-term industry stability and business profitability.

2. Development Orientation for the Mineral and Metallurgical Industry

- Elevating the Mineral Industry to Match the Coal Industry: Strengthen resource exploration and invest in new mines to ensure sustainable resource development. Diversify ore/concentrate supply sources through joint mining ventures and imports to secure stable raw material supplies for mineral processing plants. Maintain efficient production in existing mining and processing complexes.

- Leading Bauxite-Alumina-Aluminum Production: TKV will oversee the entire value chain, from bauxite exploration and mining to alumina and aluminum production, driving the development of Vietnam’s aluminum industry. Expand the Tân Rai and Nhân Cơ Alumina Complexes to an annual capacity of 2.0 million tons of alumina per complex. Invest in the Đắk Nông 2 Bauxite-Alumina-Aluminum Complex, with an annual capacity of 2.0 million tons of alumina and 0.5 million tons of aluminum. Develop a new aluminum electrolysis plant in Lâm Đồng with a 0.5 million tons/year capacity. Aim to complete the Đắk Nông 2 Aluminum Electrolysis Plant by 2030, enhancing deep processing and positioning Đắk Nông as the national aluminum industry hub.

- Deep Processing for High-Value Products: Develop advanced mineral processing technologies to create high-value products; Explore investment in a steel billet production plant in Hà Tĩnh, contingent on government approval for the Thạch Khê iron ore mining and processing project. Invest in factories for producing rare earth oxides, ultrafine zircon, pigment, sponge titanium/metallic titanium, and deep-processed products from cathode copper.

- Technology Innovation and Environmental Sustainability: Strengthen research, technology transfer, and adoption of advanced technologies in exploration, mining, and processing. Upgrade equipment and processing methods for various mineral types while ensuring environmental protection.

- Develop integrated mining and processing complexes for bauxite (Tây Nguyên), titanium (Bình Thuận), rare earths (Lai Châu), chromite (Thanh Hóa), and copper (Lào Cai) with modern technology and advanced equipment. Implement mine rehabilitation and environmental restoration after mining activities, integrating green development projects to support economic and social growth while promoting eco-friendly industries.

- Diversify mineral products to suit the needs of the consumer market, expand investment forms, research and investment cooperation; maximize the value of the coal - mineral - metallurgy interconnected model to form a TKV ecosystem in line with the circular economic development orientation: Coal - electricity - metallurgy...

3. Orientation for the development of the electricity industry:

- Renovate, upgrade, and innovate the technology of existing coal-fired power plants to take advantage of low-quality coal resources, and complete investment projects in the Power Plan VIII.

- Implement fuel conversion according to a suitable roadmap associated with modernizing production and managing advanced power plants; apply emission reduction technologies and green technologies in line with the world's technology development trends. Orientate to implement fuel conversion to biomass and ammonia for coal-fired thermal power plants that have been in operation for 20 years when the cost is suitable and there is a full legal corridor...

4. Orientation for the development of industrial explosives and chemicals:

- Continue to develop core products such as industrial explosives, explosive precursors and service product chains. Develop production of some other explosive precursors such as Sodium nitrate (NaNCh)... Research and production, gradually replace imported raw materials and supplies (ammonia-NH3...) to serve production lines: Ammonium nitrate, underground emulsion, bulk emulsion, green energy conversion...

- Invest in fertilizer production, participate in the production chain of supplying basic chemical products used in the mining and processing industry of minerals, petrochemicals; water treatment industry, production of detergents, liquid caustic soda, and some other auxiliary products for agriculture and accompanying preparations to bring chemical revenue closer to the main product.

- Expanding the export market for industrial explosives, explosive precursors and drilling, blasting, and mining services to regional countries such as Laos, Cambodia, Indonesia...

Orientation for developing the business model and organization of TKV:

1. Orientation for developing the business model of TKV:

Linking business with production to create a value chain for mining, processing coal - minerals, producing electricity, metallurgy, industrial explosives, and logistics services in line with the circular economic model through the use of renewable energy, eliminating the use of toxic chemicals, reusing and recycling waste (waste soil and rock, treated wastewater, industrial waste...) as raw materials for infrastructure and industrial development; along with extensive development, enhancing in-depth development by applying new, advanced and modern technologies. Gradually moving towards connecting the 3 main production and business sub-sectors of TKV: "Coal - electricity - metallurgy".

2. Development Orientation for the Parent Company - TKV

Maintaining a Hybrid Operating Model: The Parent Company - TKV will continue to operate under a hybrid model, carrying out both financial investment functions and direct production and business activities. Assign specific roles to subsidiaries handling processing, warehousing, logistics, and coal trading to enhance proactive coal consumption and import operations. Implement the equitization (privatization) of the Parent Company - TKV at an appropriate time, following the Government-approved schedule.

3. Development Orientation for the Organizational Model of Subsidiaries:

Maintain 100% ownership or majority controlling shares in subsidiaries engaged in core business sectors and industries related to TKV’s main operations.

4. Reorganization to improve the operational efficiency of member units:

Consolidate to increase the scale of some coal production joint stock companies with adjacent geographical locations and resources; reorganize research institutes according to the research-manufacturing-technology transfer model; reorganize investment consulting, design, supervision, and project management units in a streamlined and professional direction; reorganize geological exploration companies to form strong enough companies to conduct survey and exploration activities for coal and minerals at home and abroad.

Divestment of investments in subsidiaries and affiliated companies that are ineffective or not suitable for development orientation in the coming period./.