Big expenses with coal transportation from mining areas to external markets will require costs reduction and an increase in sector’s efficiency

4 april 2014 | Nezavisimaya Gazeta

On the 3rd April, the Government of the Russian Federation discussed the draft of the state program for long-term development of coal mining industry in the Russian Federation for the period up to 2030. The main priority is to increase solid fuel production. The state program aims at increasing the coal supply for both domestic and external markets.

Vladislav Onischenko
Vladislav Onischenko
First Deputy Director General

The Prime Minister Dmitry Medvedev underlined that among the expected results is reaching an average annual coal reserve of 530 million tons. “New facilities (only 505 million tons) will be built and the existing ones will be subject to modernization (370 million tons). It is planned to increase supply for both domestic and external markets, to develop rail road infrastructure and port terminals. Energy consumption should also be decreased by 1.5 times approximately. Synthetic fuel production output will also be increased”, - the Nezavisimaya Gazeta quotes Dmitry Medvedev. The Prime Minister acknowledged that considering the economic and ecological characteristics of the coal, it cannot compete with natural gas, but the state is interested in diversifying the energy balance and in stimulating the “modern and environmentally friendly coal production”, writes the newspaper.

 Referring to the First Deputy Director General of the Analytical Center Vladislav Onishenko, Nezavisimaya Gazeta writes that the implementation of the state program aims at increasing the competitiveness of coal industry on external markets and facilitate the development of other sectors like chemical industry. The expert considers that coal industry is important for covering the demands of the internal energy market and also for having a role in exporting, primarily to European and Chinese markets. International price fluctuations for energy products, including coal and gas, influence the external demand. When the demand grows there must exist the possibility to increase the quantity of coal available for export. “Big expenses with coal transportation from mining areas to external markets will require costs reduction and an increase in sector’s efficiency”, - considers Mr. Onishenko.