Coal market participants said about difficulties in sale

The mines that form part of the vertically integrated energy and steel companies can successfully develop.

EastCoal company announced a bankruptcy on 11 November. A source in the company said that the main reason for stopping the production and bankruptcy is the inability to find investments for development. Currently the cost value of a ton of product is $110-120 while the cost per ton of coking coal on the market is about $ 120.

According to Kommersant -Ukraine in the article "Coal has become too heavy to lift", EastCoal is not the only one listed on the Exchange Ukrainian coal company that has financial difficulties. Previously the company Sadovaya Group which is listed on the Warsaw Stock Exchange said it finished the first half of 2013 with a net loss of $7,6 million compared to $2,8 million of net income for the first six months of last year.

Another company listed on the Warsaw Stock Exchange Coal Energy ( from July 1, 2012 to July 1, 2013) had reduced coal production by 15.5 % - to 1,5 million tonnes in 2013 fiscal year.

As the majority shareholder of the Coal Energy Viktor Vishnevetsky said only those mines that are part of a vertically integrated energy and metals companies (VICs ) can flourish on the market today. "The mines in the framework of vertically integrated companies have guaranteed sales of coal and investment from parent companies. All other coal companies have problems both with sales and financing ", - he said.

Remind the situation at the state mines is even worse than at private. According to the Ministry of Energy the mines have increased losses from product output by 24% for ten months to 12,2 billion UAH compared to the same period in 2012.

According to meterials of LIGABusinessInform