The Ukrainian Ministry of Energy and the Coal Industry has stated in the current year the losses of state-owned coal mines are expected to be reduced by UAH 2.7 billion ($0.223 billion).
According to the statement, the reduction of losses can occur due to an increase of 28.5 percent in the average price of material from the second quarter this year, which will allow an additional income of UAH 525.1 million ($43.4 million) by the end of the year, including UAH 312 million ($25.78 million) from the sale of coking coal and UAH 213.1 million ($17.6 million) from the sale of power-generating coal.
Also, in the current year volumes of coal sent for processing will be increased by 4.4 million mt or by 25 percent year on year. In particular, volumes of power-generating coal will be increased by 12 percent, while volumes of coking coal will be almost doubled.
The ministry has developed measures to reduce the production costs of finished goods and to make other cost savings. Up to the end of this year, costs are expected to be reduced by UAH 2.2 billion ($181.8 million).
Moreover, the Ministry of Energy and the Coal Industry has banned state mines from selling graded coal directly, transferring the exclusive rights to sell coal to the state-owned enterprise Ugol Ukrainy.