DTEK to become coal importer
Published by Joseph Green,
Editor
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
Read the article online at: https://www.worldcoal.com/coal/01062015/dtek-become-coal-importer-2348/
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