EastCoal confirms talks to sell mine in Luhansk region
KYIV. Aug 23 (Interfax) - Inter-Invest Coal LLC, which is controlled by Canada's EastCoal Inc, confirmed it was in talks regarding the sale of the Menzhynsky mine in Ukraine's Luhansk region, the company's press office said.
The company did not say who the talks were being conducted with.
"One of the conditions [for the sale] is that the buyer settles wage arrears. The possibility of putting the mine under the Ukrainian Energy and Coal Ministry's management is under consideration," the company said.
Inter-Invest Coal has so far paid of wage arrears for April and May this year.
The Luhansk regional administration has said Industrial Union of Donbass Corporation (ISD) could buy the Menzhynsky mine.
In spring 2013, due to the difficult situation on the market when the price of coking coal almost halved, EastCoal accumulated significant wage debts to miners.
In late May, EastCoal initiated the reorganization of Inter-Invest Coal. Under reorganization, a new enrichment factory in Pervomaisk was sold to repay debts.