Raspadskaya Coal Company (Raspadskaya), the second largest coking coal producer in Russia and a subsidiary of domestic steelmaker Evraz Group, has announced that in 2009 it increased its raw coal production by 12 percent year on year to 10.56 million mt.
Accordingly, Raspadskaya's total sales volumes of concentrate in Q4 2009 and for the whole of 2009 both rose by ten percent compared to Q3 2009 and 2008 respectively, amounting to 2.48 million mt and 7.7 million mt respectively.
"Currently, demand from the related sectors is recovering. It has guaranteed an increase in sales volumes and allowed the company to start updating its mid-term production and financial parameters," Raspadskaya's CEO Gennady Kozovoy commented.
In Q4 2009, Raspadskaya raised its weighted-average price of coal concentrate by 71 percent quarter on quarter to $88.7/mt FCA Mezhdurechensk, Kemerovo region, mainly due to its Russian sales, which amounted to 78 percent of its total sales volumes. In 2009, Raspadskaya raised its export sales share to 28 percent, with the sales share to the Asian market amounting to 38 percent of total export sales.
In 2010, Raspadskaya expects to increase its coal concentrate sales volumes by 10-15 percent year on year, and also expects the coal concentrate price to go up, taking into account the expected closure of contracts between key international players in April 2010.
"In 2010, we will continue to focus on keeping our status as a reliable coal concentrate supplier for the Russian customers and at the same time maintaining a high export share to Ukraine and Asia, among other things, by using our well-established relationship with Far Eastern ports," Mr. Kozovoy stated.