DTEK intends to bring gas coal to 25 million tonnes annually

DTEK intends to bring coal brand “G” to the level of 25 million tonnes annually, which will ensure the needs of Ukraine in this fuel. This was announced by the company’s CEO Maxim Timchenko in an interview with “New time”.

“We have enough stocks of the brand, But it is a question of public policy, the issue of pricing, the question of those market mechanisms that should not only declarative, but actually work to prevent such distortions in the prices that are there. The coal business is very capital intensive. It requires constant investment,” – said Timchenko.

In the long run the top-Manager also allows for the refusal of Ukraine from import of anthracite coal.

“This is directly related to the situation in the Donbas. I believe that the situation will change, Donbass will be returned and we will restore production at anthracite mines to provide coal to the independence of Ukraine. Until that happens, all players in the market reduce dependence on anthracite, translating the blocks of thermal power plants in the mark G”, – said Timchenko.

According to his forecasts, the total demand of Ukraine’s import of coal in 2017 will amount to 7 mln tons, with overall consumption at 27 million tonnes. This trend, said Timchenko, will continue in the next 2-3 years.

“Because of the blockade of Donbass was an artificially created shortage of anthracite, and Ukraine needs to get through the winter. It is important to add that today we have come to a situation of import of coal of G. this is Partly due to the fact that we and Centrenergo moved the blocks to the brand, Respectively is increased demand for this coal. But this is largely due to the decline of production at the state mines. Is a consequence of the pricing policy for coal, which was in recent years,” said the CEO of DTEK.

Over the past 8 years, DTEK, according to him, invested in coal production of 2.5 billion dollars. In 2017, the investment will amount to 4 billion UAH.

“Today we have not such a critical situation with coal G grade only because more than $ 2.5 billion we invested over the 8 years in our coal business. “Pavlogradugol” produces 20 million tons of coal per year. This lion’s share in Ukraine. 12 years ago, he mined 10 million. And over the years we have increased the production volume in 2 times. Any expert in the coal industry confirms – this is a huge investment”, – said a top Manager.

As you know, in 2016 the company “DTEK Pavlogradugol and DTEK Dobropolyeugol” who continue to mine coal brand “G” in the structure of DTEK, in total, produced 21 million tons of coal.