Raspadskaya lowers 2012 coal-production forecast by third to 7 mln tonnes
MOSCOW. Sept 21 (Interfax) - The general director of OJSC Raspadskaya , Gennady Kozovoi, has lowered the forecast for company coal production this year by a third to 7 million tonnes, against a backdrop of a sharp decrease in demand for and the price of coal.
Kozovoi said during a Friday conference call that the forecast for 2013 had been reduced 10%-15% from 13.4 million tonnes. Capital expenditures will be similarly reduced.
Difficulties with deliveries are associated with a current surplus of coking coal in Ukraine, the company's strategic planning director, Alexander Andreyev, said.
In February of last year, Raspadskaya management announced a strategy under which the company planned to mine 12.8 million tonnes of coal in 2012 and 15 million tonnes in 2013. These forecasts were later lowered.
Raspadskaya produced 1% less coal year-on-year in the first half at 3.434 million tonnes.
The average price for the company's coking coal is now $103-$105 per tonne.
Besides its flagship mine, the Raspadskaya group includes the mine MUK-96, Raspadsky open pit, a mine now under construction called Koksovaya, an enrichment plant and infrastructure enterprises. In May 2010, deadly blasts at the Raspadskaya mine killed 91 people and halted coking coal production until December that year. Raspadskaya has resumed production at some of the affected areas, but some mine workings in the accident zone are still smoldering.
Raspadskaya's primary shareholder is Cyprus-based Corber Enterprises (81.95%), which Evraz and the coal company's management headed by Gennady Kozovoy and Alexander Vagin own on an equal footing.