Raspadskaya Coal Company (Raspadskaya), the second largest coking coal producer in Russia and a subsidiary of domestic steelmaker Evraz Group, announced on Wednesday, May 19 a situation of force majeure to its counterparties, including Russian and foreign metallurgical and coke-chemical enterprises, transportation companies and ports, stating that its coking coal concentrate sales would decrease following the accident at its Raspadskaya mine on the night from May 8 to May 9.
"Despite the current situation Raspadskaya intends to take all measures to eliminate the reasons for the impossibility to fulfill its contractual obligations," reads the company's statement.
In 2010, before the accident, the average production volumes of semi-hard coking coal at Raspadskaya's three enterprises (Raspadskaya mine, MUK-96 mine, Raspadsky open-pit) amounted to about 950,000 mt per month and coal concentrate sales volumes amounted to about 760,000 mt per month, with around 65 percent of sales going to Russian clients and 35 percent to export.
Meanwhile, in the three to four months starting from June 2010, semi-hard coking coal production at the company's two remaining units (MUK-96 mine, Raspadsky open-pit) will amount to 350,000 mt per month and coal concentrate sales would amount to around 255,000 mt per month. In May 2010 (up to May 18, 2010) Raspadskaya's sales volumes to customers amounted to 355,000 mt of coal concentrate.
"During a meeting held with the participation of representatives of major Russian customers, an agreement was reached to the effect that, as soon as Raspadskaya reconsiders its export plans, in the coming months the company will deliver coal concentrate to a few of its Russian customers," said the company in its statement. "This decision will prevent the aggravation of the situation in the whole ‘coal-coke-pig iron-steel' production chain," it added.
66 workers died and 24 are still missing following the explosions at the Raspadskaya mine, according to official media reports. On Tuesday, May 18, Russian prosecutors said they would probe safety at all Russian coal mines and open a criminal case against the general director of the Raspadskaya mine, who resigned after a rebuke from Russian Prime Minister Vladimir Putin.
Breakdown of Raspadskaya's coal production volumes per enterprise:
2007 |
2008 |
2009 |
Q1 2010 |
|
Raspadskaya Mine |
8,851,000 mt |
5,690,000 mt |
6,856,000 mt |
2,286,000 mt |
Share of total coal production |
65% |
61% |
65% |
76% |
Raspadsky Open-pit |
2,779,000 mt |
1,884,000 mt |
1,899,000 mt |
336,000 mt |
Share of total coal production |
21% |
20% |
18% |
11% |
MUK-96 Mine |
1,920,000 mt |
1,829,000 mt |
1,783,000 mt |
390,000 mt |
Share of total coal production |
14% |
19% |
17% |
13% |