7 Aug 2020 09:38

Evraz might resume production at Raspadsky pit mine given firm coal price of at least $130/t

MOSCOW. Aug 7 (Interfax) - Evraz is prepared to resume production at its Raspadsky open-pit mine in Siberia given a price of at least $130 per tonne for hard coking coal.

"Today the price of coking coal is at an historic low, less than $100 per tonne. I think that, giving a rough estimate, [the resumption of mining at the pit] will happen given the sustainment of coal prices at no less than $130/tonne," the Russian steel and mining group's CEO, Alexander Frolov said at a conference for investors.

Raspadskaya announced in late July that it had suspended production at its Razrez Raspadsky pit mine in May. As a result of the start of operations at a new wall at the No. 29 seam at the Yesaulskaya deep mine, the closure of seam No. 10 at the Raspadskaya deep mine and the suspension of operations at the Raspadsky pit mine, production of GZh rank coal will remain unchanged, but production of premium coal mined by the group will increase, Evraz said in a financial statement released on Thursday.