• Українською
  • Volodymyr Kistion: Coal industry reform seeks to increase the profitability of Ukrainian mines
    posted 14 August 2017 11:02

    The reform of Ukraine's coal industry is vitally necessary. We can increase coal extraction up to 2 million tons. The Government has its vision of reforming the coal industry, which is conceptually backed by miners and trade unions of miners. This was stated by Vice Prime Minister of Ukraine Volodymyr Kistion in the course of the first meeting of the interagency working group on crisis management in the coal industry.

    According to him, the Concept for the reform of the country's coal industry by 2020 was developed by joint efforts of the public and trade unions. The Concept stipulates for the transfer of 33 state-run coal mines under the supervision of the newly established state enterprise - "National Coal Company" that should determine which coal mines are most cost effective as well as in which it is important to invest a financial resource for the modernization.

    "Within a single state-owned company it's easy to solve administrative issues as well as to transfer equipment from unprofitable mines to other objects. According to preliminary estimates, the formation of such a company will enable the state to economize the cost of maintaining of unprofitable mines to the tune of UAH 1.5 billion per year. These funds can be allocated to upgrade coal enterprises ", the Vice Prime Minister stressed.

    A clear vision of the Cabinet of Ministers of Ukraine concerning the reform of Ukrainian mines is also enshrined in the draft of the new Energy Strategy of Ukraine until 2035, noted Volodymyr Kistion. It encapsulates key state targets in the coal sector, inter alia:

    optimization of the structure of coal mining and other state enterprises of the coal industry, improvement of economic and technical indicators of their activities

    development of the necessary infrastructure to strengthen Ukraine's ability to provide export-import operations with coal products;

    the transition to self-funding  extraction with the reorientation of state support for labor protection and protection of the environment;

    achievement of the level of coal production, which will provide energy consumers with predominantly fuel of national production.

    «We have set the task aimed to improve the financial, economic and technological conditions of coal mining enterprises, to create favorable environment for attracting investments in the development of the industry, which is in burning need for complete modernization, as well as to solve the issues pertaining to the social and ecology spheres in the mining regions. We are committed to make  Ukrainian mines profitable. If we succeed, in the short term there won’t be unprofitable coal mines», Volodymyr Kistion underscored.