Raspadskaya Coal Company (Raspadskaya), the second largest coking coal producer in Russia, has announced that in 2010 its coal production decreased by 32 percent to 7.16 million mt and its sales volumes of coal concentrate fell by 31 percent year on year to 5.35 million mt due to the accident in May 2010 as a result of which production at Raspadskaya mine was temporarily suspended.
Meanwhile, in Q4 2010 Raspadskaya's coal concentrate sales volume rose by 33 percent quarter on quarter due to the increase of production after the commencement of work on face 4‐9‐21 bis (seam No. 9) at Raspadskaya mine on December 16, 2010 - the first seam on which work recommenced after the accident. In addition, in Q4 Raspadskaya hit its after-accident monthly sales target of 300,000 mt of coal concentrate.
Q4 2010 (mt) | Q3 2010 (mt) | Change q-o-q | 2010 | 2009 | Change y-o-y | |
Total raw coal production | 1,274,000 | 1,108,000 | +15% | 7,160,000 | 10,560,000 | -32% |
Sales Concentrate - Russia | 902,000 | 676,000 | +33% | 4,132,000 | 5,536,000 | -25% |
Sales Concentrate - export | - | - | - | 1,222,000 | 2,179,000 | -44% |
Total sales of concentrate | 902,000 | 676,000 | +33% | 5,354,000 | 7,715,000 | -31% |
Weighted-average price of concentrate (FCA Mezhdurechensk) | $131.2/mt | $122.8/mt | +7% | $113.2/mt | $59.6/mt | +90% |
By the end of 2011, Raspadskaya plans to recommence production at all seams of its Raspadskaya mine and to achieve its pre‐accident monthly levels of production and sales, which will allow it to resume export sales, particularly to Asia. "Fixing delivery directions and clients will depend on demand from Russian steel and coke producers as well as the price environment," Raspadskaya said.