7 Sep 2010 17:05

Ukraine plans to raise loans from China for coal projects totaling $1 bln

KYIV. Sept 7 (Interfax) - Ukraine's Coal Industry Ministry and China Development Bank have signed a framework agreement on financial cooperation, the ministry said in a press release.

In line with the agreement, Ukraine has submitted a package of seven investment projects totaling $1.03 billion to the Chinese side.

The projects are at D.F. Melnikov Mine (Lisichanskugol), Novopavlovskaya (Donbassantratsit), Shakhterskaya-Glubokaya (Shakhterantratsit), Rossiya (Selidovugol), and Dimitrov and Stakhanov (Krasnoarmeiskugol). All are state enterprises.

The Coal Industry Ministry plans to carry out the modernization of the Novopavlovskaya, Melnikov and Shakhterskaya-Glubokaya mines this year as a pilot project, at a total cost of $120 million.

China Development Bank representatives will visit Ukraine from September 10-October 10 to discuss the parameters of future loan agreements.

Ukraine plans to complete privatization of the coal producing enterprises that have investment appeal by the end of 2014.

Ukraine's coal production enterprises boosted coal output 3.1% in the first eight months of the year to 49.225 million tonnes. Production of coking coal fell 3% in the eight months to 16.393 million tonnes, while energy coal output rose 6.5% to 32.832 million tonnes.

Ukraine's coal production declined 7% in 2009 to 72.220 million tonnes, including 25.494 million tonnes of coking coal (down 4.3%) and 46.725 million tonnes of energy coal (down 8.4%).

The official exchange rate on September 7 was 7.9082 hryvni/$1.