Coal output decrease in January-October was the result of the lack of financing from the state.
“That’s the main problem, as coalmining is the continuous process. If coal is mined at one site, other sites should be prospected and prepared. If this doesn’t receive financing, it results in the output decrease, and finally stop”, said the energy expert Valentin Zemlyansky.
Another reason is that government believes that cost price of coal at state mines is 1100 UAH per ton.
“But the market shows that the average coal price is 1700 UAH per ton, with 2 thousand at state mines. Thus mines cannot sell coal at real prices, and this results in the lack of financing. So Ukrainian government is to blame for the decrease in coal mining”, he added.
In January-October Ukraine mined 33.17 million tons of ordinary coal, down by 42.1% YoY. (Ukrainian metal)