Andrei Karunos

I

n 2004, for the first time in its history, the Kuznetsk Coal Basin exceeded the upper limit of coal production equaling 150 million tons: the coal output amounted to almost 159 million tons, including about 61 million tons of coking coal. By the preliminary estimates, in 2005 the volume of coal production will increase up to 165 million tons, but the bar will not get higher, at least, in the middle term.
Recently, practically all coal-mining companies in the Basin have ensured the growth of production and profit volumes (about $450 million in 2004). This has been prompted, to a large extent, by favorable market conditions. Specialists link the growth of world prices for coal, in the first place, with the reduction of the 2004 export of Chinese coal against the background of the increased consumption by countries of the European Union. The index of prices for the Kuzbass coal went up 37% in a year, including the fact that coking coal became more expensive by 45 % and the price for coal concentrate increased 69%.
Specialists note the changed nature of the Kuzbass coal industry’s growth after a large-scale restructuring. By now, economically inefficient, low-productivity mining enterprises have been closed down along with those that have had unsafe labor conditions. The advanced technologies of coal production and processing are taking the lead. This has also had an impact on labor productivity, which is up 11%, to 150 tons of coal per each miner.
Shareholders of coal-mining enterprises with quite a few owners of steel companies among them seemingly consider financial investments "in coal" to be one of the priorities. Thanks to these investments, the region is witnessing the accelerated rates of technical re-equipment and reconstruction of the operating mines as well as open-pit mines, construction of new enterprises for producing, processing and transporting coal.
In 2004 capacities to produce over 15 million tons of coal year-on-year have been set up in Kuzbass. In 2005 4 mines, 2 open-cut mines and 3 concentrating mills will be commissioned.
There are also some unique technologies among those being applied. For example, the open-underground method of production has been used for the first time at the open-pit mine Raspadsky, which has been put in operation in August 2004 and which has been designed to produce 3 million tons of coal year-on-year. Underground operations are managed from surface. At the same time, three most important tasks are accomplished: complete labor safety for miners, high productivity of mining, rational subsoil use through extracting coal reserves, which cannot be produced by traditional technologies.
New coal-concentrating mills and installations are also distinguished by the latest level of production. They are using ecologically clean technologies that let enrich several brands of coal simultaneously.
The region’s administration names the improvement of the technological and ecological safety the major task for Kuzbass’ coal industry and addresses this requirement to enterprises’ owners. Governor of the Kemerovsk region Aman Tuleev reminded that, regardless of all achievements and constant attention to the question of bettering the mining labor conditions, late last year and at the beginning of this year there were accidents at mines, explosions of methane, fires that resulted in the loss of life. "It cannot go on any longer like this. The rules of safety are written with the blood of miners and they should be rigorously observed. Safety means a correctly developed project of handling a field and there should be no more coal to be mined than is provided for by the project. Nobody needs to risk today!", he said categorically.
First deputy governor Valentin Mazykin admits that traumas and loss of life are still accompanying the development of the coal industry. According to Mazykin, in 2004 Kuzbass has lost 115 miners and 50 miners more in the first half of 2005. In his words, in terms of mining-and-geological conditions Kuzbass’ mines represent a higher danger and they are distinguished by emissions of methane that happen more often. These natural threats are aggravated by the high degree of equipment’s wear, use of outdated production technologies and unjustified saving of expenses on maintaining labor safety, personnel’s discipline and qualification. Basically, the responsibility for tragic consequences is on enterprises’ leadership that keep increasing production without sufficient investments.
In the last 6 years businessmen invested over $5 billion in setting new capacities in Kuzbass. The level of safety at such enterprises is, of course, higher but, judging by all signs, construction of new mines will be limited as well. The regional administration seeks to limit issuing licenses, which, under a new law, are now given out by the Federal Ministry of Natural Resources. The administration has already called upon the Ministry to correct "the program of licensing subsoil sectors for 2005 and 2006" towards reduction of such sectors’ list. Experts believe that there will be less auctions for selling rights to develop coal reserves of the Kemerovsk region, despite the fact that they bring considerable funds to the budget.
According to the data provided by Valentin Mazykin, in 2005 about 20 auctions with respect of new sectors have already taken place. In total, the licensing list of the Ministry of Natural Resources contains 70 such sectors. In the opinion of the deputy governor, an active issuing of licenses will negatively affect the region’s ecological situation. Governor Aman Tuleev also expressed his concern on this score.
Since December 2004 ãîäà there has been a coordinating council in Kuzbass on development of the coal industry, labor protection, industrial and ecological safety, which consolidates major shareholders. This Council has already taken a decision to develop target programs for providing safety at mines and has sanctioned operation of the extraordinary commission on the problem of industrial safety of mining enterprises.
The determination of authorities in the largest coal-mining region to take control over production development has immediately affected cost of new coal sectors and has led to a sharper competition for the right to develop them. However, shareholders of coal-mining companies have positively reacted to authorities’ initiatives and, judging by their response, they are ready to support the new strategy on development of coal mining in Kuzbass.

Reference:
The coal-mining industry accounts for over 30% of the total volume of Kuzbass’s industrial production. The coal reserves there amount to 690 billion tons of low-ash coals and they are represented by all world-known brands as well as by technological properties of coking and power-generating coals.
There are 133,000 people working in the industry. Coal is being produced at over 50 mines and 44 open-pit mines, there are 27 coal concentrating mills and installations. In 2004 the share of producing coal by open-cut mining amounted to 51.3%. The largest open-pit mines belong to the companies Kuzbassrazrezugol, Yuzhny Kuzbass, Chernigovets, Mezhdurechie. Enterprises of the companies SUAK, Kuzbassugol, Prokopievskugol, Raspadskaya ugolnaya kompania are the leaders in the underground coal production. In the last six years 27 coal-mining enterprises with the total design capacity of 40.3 million tons have been constructed and commissioned in Kuzbass. Also, 4 concentrating mills have been put in operation. Their design capacity for coal processing amounts to 9.7 million tons.