DTEK resumes coal production at Chervonyi Partyzan mine

Stacy Irish

09-Sep-2014

Ukrainian coal miner and electricity producer DTEK has resumed thermal coal production at its Chervonyi Partyzan mine, the company said.

Several coal miners in Ukraine were forced to cut or suspended production in July and August as a result of its geopolitical conflict with Russia, which damaged roads and railway lines and made it challenging for miners to continue operations and deliver coal to domestic power plants.

In July, the Chervonyi Partyzan mine suspended coal mining due to the hostilities within the country to protect the safety of its employees [ see CSD 18 July ]. Coal mining operations at the mine were suspended for 50 days.

A ceasefire between Russia and Ukraine was signed on 4 September, which has enabled the company to restart production to increase its coal reserves. The Chervonyi Partyzan mine will be gradually ramping up production providing there is no further military operations in the area, the company said.

Operators of Ukrainian power plants have been forced to increase the amount of thermal coal they import to boost domestic coal reserves in order to maintain stable electricity output in the country.

The Ukrainian government last week signed an agreement to buy 1m tonnes of coal from South Africa as its thermal coal mines which were supplying coal to Ukrainian thermal power plants were shut because of conflict in the Donets basin where the majority of the country’s coal mines are based [ see CSD 4 September ].

Coal market sources are expecting more mines in Ukraine to restart production as a result of the ceasefire. However, Ukraine will continue to be a major importer of coal from South Africa, Colombia or the United States in the coming months to boost its low thermal coal reserves.

Ukraine’s move from a coal exporter to a coal importer would also have an impact on Turkey – a major importer of Ukrainian coal – who would also be forced to source its thermal coal supplies elsewhere. Stacy Irish

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