Kuzbass Fuel Co boosts coal output 20% in H1
KEMEROVO. Aug 13 (Interfax) - OJSC Kuzbass Fuel Company (KTK) boosted coal production by 20% year-on-year to 4.89 million tonnes in the first half of 2013, the company said in a press release.
"Most of the growth came from the open-pit mine Vinogradovsky, which produced 1.59 million tonnes of coal, which is 145% higher than in H1 2012," the statement said.
Sales, including resales of coal acquired from other companies, were down 6% year-on-year to 4.54 million tonnes in the six-month period.
Domestic sales slumped 22% to 1.4 million tonnes "due to a seasonal consumption decrease in Russia. On the domestic market energy coal in the country is used mostly to generate heat, so demand peaks in Q4 of each year, and shows a decrease in Q2," the press release said.
Coal exports grew 3% to 3.14 million tonnes, at 69% of total sales.
KTK slashed coal resales 55% in H1 2013 to 400,000 tonnes in order "to increase own coal sales," the company said.
The average price of export sales fell 30% to 945 rubles per tonne. The average price on the domestic market declined significantly less, by only 4%, to 1,210 rubles per tonne.
In Q2 2013, the average selling price of coal remained at the level of Q1, amounting to 1,025 per tonne, down 19% year-on-year. The average selling price on the domestic market also remained at the level of Q1, coming to 1,207 per tonne. The average selling price of coal for export increased by 9% to reach 980 per tonne, KTK reported.
"The main driver of price reduction was exports to the Asia-Pacific region," the press release said.
Q2 2013 coal production was up 5% quarter-on-quarter to 2.5 million tonnes. Because of the traditional seasonal decline in demand for coal in Russia, sales on the domestic market plummeted by 57% in Q2 to 420,000 tonnes, while exports soared 24% to 1.74 million tonnes. This was "due to the additional volume of washed coal produced at the Kaskad-2 washing plant," the statement said.
KTK is the sixth largest producer of steam coal in Russia, based on production volume in 2012. As of January 1 this year, its JORC resources amounted to 391 million tonnes of run-of-mine steam coal, confirmed and probable reserves to be worked in 2013-2030 - 174 million tonnes.
KTK includes coal mining enterprises (the Vinogradovsky, Karakansky-South and Cheremshansky open-pit mines), two washing plants (Kaskad and Kaskad-2), a distribution network and infrastructure enterprises.