Pavlogradugol and Dobropolyeugol incorporated into DTEK plan to increase run-of-mine (ROM) coal by 10-15% in 2017, DTEK CEO Maksym Timchenko has said.
He said that the Pavlogradugol production target for 2017 was 19-20 million tons (a rise of 3.3-8.7% on 2016), and that for Dobropolyeugol – 3.8 million tons (a rise of 65.2%).
He said that if investments were made into these coal companies, in the future they could produce 25 million tons of coal every year.
“If we reach ROM coal production of around 25 million tons for these two companies, this would be enough, according to our calculations,” he said.
Timchenko recalled that when Pavlogradugol was bought in 2005, the enterprise annually produced around 10 million tons of coal, while today production reached almost 19 million tons.
“Gas coal in our country is mainly the result of our investment in the development of the coal business. It exceeded $2 billion in 10 years. This is the answer to the question where borrowed funds are spent and what is the effect. Today we are balancing our needs via investment into Dobropolyeugol and Pavlogradugol,” he said.
“Coal production is a capital intensive business. One must permanently invest to have enough coal, not speaking about the increase of production by 1-3 million tons. In the conditions when there is an acute need in boosting production, the issue of considerably increasing investment is not even a strategic choice, but the vital necessity. Large investment is required for sinking, maintaining production and overland infrastructure,” Timchenko said. (Interfax-Ukraine/Ukrainian metal)