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DTEK to become coal importer

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World Coal,

Due to difficulties in the domestic mining industry, Ukraine's biggest power producer and major coal miner DTEK will become a coal importer.

"In a country like Ukraine which typically produces 75 to 80 million tonnes of coal a year, it's insane to think we're going to turn into an importer, but there are several factors at work here," said John Woodham, Head of Trading at DTEK SA.

According to Woodham, a combination of the conflict in the east halting production and cuts to subsidies for state mines is resulting in domestic production decline.

DTEK accounts for approximately 29% of the country's thermal power generation and controls about 46% of Ukraine's coal production.

Ukraine produces around 80 million t of coal annually, although last year production fell to around 65 million t, due to the conflict with pro-Russian forces.

Until recently, Ukraine has generated around 40% of the country's power needs with domestic coal and the change to becoming an importer may require infrastructure investments.

Edited from source by Joseph Green. Source: Reuters

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