2 Mar 2011 18:55

Energy Ministry to submit coal strategy in August

MOSCOW. March 2 (Interfax) - The Russian Energy Ministry must submit its draft coal industry strategy to 2030 to the government in August this year, a source at a profile agency told Interfax.

The instruction was issued in February at a meeting on the fuel and energy sector's results for 2010.

Russia produces just over 320 million tonnes of coal in 2010, but a draft licensing program approved by the Energy Ministry in the summer of last year says this should rise to 362 million-400 million tonnes by 2015. Coking coal output could rise to between 71 million and 85 million tonnes by 2015, depending how much new capacity is commissioned. Domestic coking coal demand is estimated at 42 million-45 million tonnes.

Overall coal production should rise to 408 million-463 million tonnes by 2020, with coking coal accounting for 83 million-91 million tonnes of this and domestic demand estimated at 40 million-42 million tonnes.

Russia might mine 514 million-544 million tonnes of coal in 2030, including 92 million-105 million tonnes of coking coal, with domestic consumption estimated at 38 million-40 million tonnes.

The draft program says Russia's overall coal resources amount to 4.09 trillion tonnes standard fuel, and reserves to 272.8 billion tonnes. It says 89% of this is steam coal and 11% coking coal.

Listed coking coal reserves on the state balance are 49.7 billion tonnes, including 39.7 billion tonnes of proven A+B+C1. About half of the proven reserves are high-grade (Gzh, Zh, KZh, K) and more than half of these (13.9 million tonnes, 66%) are GZh and Zh and 5.2 billion tonnes, 13%) are KZh and K grades. At present, 78% of all coking coal reserves (31.1 billion rubles) are in unlicensed properties.

Licensed properties only contain 15% (A+