Expert: Competent coal mining could cut Russian gas cost for Ukraine
Leader of Independent Trade Union of Miners of Ukraine Mikhail Volynets believes that competent coal mining in Ukraine can reduce the amount of natural gas the country has to buy in Russia, REGNUM quotes the expert to say in an interview in Donetsk Dec 5.
“We have 117 billion of proven coal reserves, Only 6.6 billion of these reserves are part of industrial reserves, of them 3.5 are used for the energy sector. Coal constitutes 95.4% in the structure of Ukrainian reserves of organic fuel, natural gas – 2.6%, and oil – 2.0%. If we produced 100 million tons of coal annually, Ukraine would get enough to cover all her needs for 300 years. And we wouldn’t need to buy as much natural gas in Russia,” Mr. Volynets argues.
The trade union leader is convinced that the Ukrainian authorities prefer to neglect domestic methane and coal production, buying more costly produce abroad. “The logic of our leaders is: it is better to use up the existing mines and plunder than develop reserves and build new enterprises. It is better to buy expensive foreign natural gas than produce our own methane for industrial purposes. Our coal is quality and inexpensive, although we are in the complex mining and geological situation, since the coal production cost is influenced by the fact that we spend little for machinery and equipment and our labor is cheap. A ton of coking coal costs $100-180 in Ukraine, while German coking coal costs $260 per ton,” Mr. Volynets informed.
16:06 12/05/2007
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