“DTEK Energy commissioned 16 new longwalls in January-September 2024, the company’s press service said on Friday.
According to the press service, the company’s miners plan to commission nine more longwalls by the end of the year.
“This allows us to meet the fuel needs of thermal power plants at the peak of electricity consumption, accumulate the necessary coal reserves for the autumn-winter period and maintain the reliability of the Ukrainian power system,” the statement said.
In total, since the beginning of the full-scale Russian invasion, DTEK Energy has invested almost UAH 18 billion of its own funds in Ukrainian coal mining.
The investments were directed to the construction and repair of capital mine workings, completion of coal longwalls, equipping mines with tunneling equipment, underground mine transport and projects to maintain production facilities.
As reported, in 2023, DTEK Energy commissioned 26 new longwalls.
In 2023, the energy holding’s investments in Ukrainian coal mining amounted to about UAH 7 billion, which is almost twice as much as in 2022.
“DTEK Energy ensures a closed cycle of electricity production from coal. In particular, the company has established a full production cycle in coal mining: coal mining and enrichment, machine building and maintenance of mine equipment.
Since the beginning of the year, Uglepromtrans LLC, a member of Metinvest Group, has transported 2 million tons of coking coal and coal concentrate within the framework of Metinvest Pokrovskugol, which manages the enterprises of Pokrovsk Coal Group (Pokrovskoye).
According to the company, Vuglepromtrans trains are responsible for delivering premium concentrate to customers. Despite the war, the railroaders are working in a stable mode, increasing their speed and shunting operations.
In addition, it is reported that locomotive crews at Shakhtnaya station are providing railcars for loading coal concentrate to their main customers, Pokrovskoye Mine Administration and Svyato-Varvarinskaya Concentrator.
Currently, the rolling stock service employs 63 people, and one in four of them is a diesel locomotive driver.
As reported, in 2023, Vuhlepromtrans railroaders built 68 meters of track and three turnouts. The plans for this year are to lay another turnout and 60 meters of track, which will facilitate access to the diesel locomotive garage.
Nikolay Vishnevsky, Director of Vuglepromtrans, noted that in the face of a full-scale invasion, Metinvest transformed its business in a timely manner and set up logistics to maintain key production facilities and, most importantly, retained its staff.
“Metinvest created Metinvest Pokrovskugol, which manages the Pokrovske Coal Group’s enterprises. It includes, among others, Pokrovske Mine Administration and Svyato-Varvarinskaya Concentrator.
Svyato-Varvarinskaya Enrichment Plant is a premium coal concentrate producer in Ukraine. Its production capacity is about 8 million tons of raw coking coal per year with the ability to enrich five different classes of coal.
Pokrovskoye (formerly Chervonoarmeyskaya-Zapadnaya No. 1) is Ukraine’s largest coking coal producer.
The major shareholders of Metinvest B.V. are SCM Group (71.24%) and Smart Holding Group (23.76%), which jointly manage the company. Metinvest Holding LLC is the management company of Metinvest Group.
“DTEK Energo plans to import about 210,000 tons of coal from Poland for more reliable passage of the autumn-winter period by thermal generation, the energy holding company said in a press release on Wednesday.
Under the fuel import contract, an agreement has been reached on the supply of thermal coal throughout the heating season, starting from September 2023 and until March 2024.
As the company noted, the first coal shipments are expected as early as this week.
“In the conditions of war, unpredictable actions of the enemy and the increased load that the company’s thermal power plants have been carrying in recent months, additional volumes of imported fuel will allow to “back up” and provide an additional margin of safety for a more stable passage of the nearest heating season by thermal generation,” said Ildar Saleev, CEO of DTEK Energo, quoted in the press release.
As reported, DTEK Energy’s thermal power plants have increased their electricity output by 28% over the last four months compared to the same period last year. In turn, in August, when consumption was at record highs for the summer due to the heat wave, power engineers generated 35% more electricity than in August 2022.
In just eight months of this year, DTEK Energy’s thermal power plants supplied almost 9.9 bln kWh of electricity, which is equivalent to the average consumption of about 3.3 mln households during the year.
PJSC “Centrenergo” plans to import coal to pass the fall-winter period of 2023/2024, General Director Andriy Churkin said.
“Completely on our own coal we will not pass this winter. And in the near future, Centrenergo plans to sign contracts with foreign companies. There are already certain developments, I think that within a month there will be a result. We need to reach a volume of at least 80 thousand tons of coal per month,” he said in an interview with Interfax-Ukraine.
According to him, this would be a sufficient reserve, but the company is also preparing to work on gas and fuel oil.
“At Tripilska TPP, for example, there is an opportunity to work on fuel oil. We have already imported it, and I have already asked the technical directorate of the plant to make a trial run on this type of fuel,” Churkin said.
He specified that “the closest and most accessible for us is coal from Poland,” while the company buys fuel oil from PJSC Ukrnafta.
International rating agency Fitch Ratings has revised its estimates of the cost of iron ore, base metals and coal in the short and medium term, which it uses in its forecasts of operating activities and financial performance of companies in the sector.
The increase in the outlook for copper prices is due to expectations of tight global market conditions. The opening of the Chinese economy will lead to an increase in demand in the near future, as that country accounts for about 55% of global refined copper consumption. In addition, in the medium and long term, demand will be supported by the energy transition. That said, supply of the metal may be constrained by factors such as deteriorating mine productivity in Chile and political protests in Peru.
“We have raised our iron ore price forecast for 2023-2025 as stronger demand from the steel sector in Europe, North America and several Asian countries will offset a gradual decline in Chinese steel production,” the agency said in a statement. – Problems with iron ore supply in Brazil, South Africa and Ukraine will support prices in the short and medium term.
Fitch analysts kept estimates for aluminum prices unchanged except for 2025. “CRU forecasts that global aluminum inventories will remain at about 50 days in the coming years, indicating a market equilibrium,” the report said.
According to CRU, a rebound in demand from China amid lower production in Peru should reduce the global zinc surplus to 100,000 tons in 2023 from 420,000 tons last year. As a result, Fitch revised its price forecast for this metal for the current year.
The increase in estimates of the cost of gold in 2023-2025. “reflects the metal’s investment status in light of ongoing geopolitical tensions and concerns about economic growth, as well as price resilience despite rising interest rates,” the agency said in a review.
The upward revision of nickel price forecast is due to, among other things, the recovery of stainless steel production in China.
The Cabinet of Ministers of Ukraine allowed the export of 100 thousand tons of coal, which is planned to be delivered to Poland.
Taras Melnichuk, a representative of the Cabinet of Ministers in the Verkhovna Rada, said on Telegram that a corresponding change was made at a government meeting on Friday in the list of goods whose exports and imports will be subject to licensing, and quotas for 2022.
Earlier, Prime Minister Denys Shmyhal said that at the request of the Polish side, Ukraine is ready to consider the possibility of opening a quota for the export of 100,000 tons of coal.
He specified that coal reserves in the warehouses of Ukrainian power plants amount to almost 2 million tons, which is 2.5 times more than a year ago. “Therefore, we are ready to lend a shoulder of support to our Polish friends,” he stressed.
As reported, since mid-June 2022, Ukraine has set zero quotas for the export of all types of coal, except for coking coal, and on September 7, it completely banned the export of Ukrainian coal.
According to the State Customs Service, Ukraine’s coal exports for eight months of 2022 amounted to 523.863 thousand tons for $166.667 million, incl. to Slovakia – by $108.295 million, Poland – by $35.028 million, Hungary – by $20.779 million, other countries – by $2.565 million.
