DTEK, which produces some 70% of electricity in Ukraine, has received the first offers from power-generating coal suppliers from SAR and Australia, who can sell it at 1.7-2.15 thousand UAH ($68.5-86.6) per ton with 5.7 thousand kcal quality.
According to the company commercial director John Woodham, deliveries from the temporarily uncontrolled territories (the so-called Donetsk and Lugansk People’s Republics) have been extremely unstable since June 1 because of the railroad strike. And though deliveries have resumed, their volumes are too low to be able to stock enough coal by winter.
The Russian coal could be an alternative to the foreign coal as it’s cheaper and can be delivered faster: ships from SAR and Australia can reach Ukraine in 2 months, while trains from Russia – in 2 weeks. Russian coal with delivery is $15-20 cheaper, but after the many stalls in delivery only few of Ukrainian consumers will take the risk of ordering from Russia. (Ukrainian metal)