Russia can top a soviet coal production record of 420 million tonnes in 2018, while investments may amount to 130 billion rubles a year, Russia's Energy Minister Alexander Novak said, speaking at a meeting with government officials and top managers of energy companies.
The energy minister said that Russia is increasing its coal production, which this year should exceed 420 million tonnes and surpass Soviet-era production levels, and expects global demand to remain strong in the next decade.
"The threshold of 420 mln tonnes will be exceeded this year. We will most likely exceed the highest level of Soviet times mining reached in 1988. Washing volumes are also expected to grow to 195 mln tonnes, up 28%. Investments will reach 130 bln rubles per year ($1.9 bln) and tax deductions will be above 100 bln rubles ($1.5 bln)," the minister said, adding that coal mining in Russia surged 15.5% to 410 mln tonnes from 2012 to 2017.
"Production targets set for 2030 have already been achieved at present. If comparing with the updated program of 2014, we are three years ahead, and revision is required for the program and for the task of facilities commissioning, quality of coal supplied, and the share of export in supplies," Novak noted.
The minister added that exports can total more than 200 million tonnes in 2018.
Novak said that exports to Europe have limited chances to rise but Eastern exports can double by 2025, and the market share can rise to almost 20% from 9.3%.
According to him, Russia’s coal exports to Asia are seen at around 100 million tonnes this year, Reuters reported.
The executive vice-president of NewTech Services, professor of the Gubkin Russian State University of Oil and Gas, Valery Bessel, speaking to Vestnik Kavkaza, noted that coal is an important part of the raw materials produced in Russia. "Although coal accounts for about 8% in the structure of Russian energy consumption (120 million tons in oil equivalent), we still export a lot of coal," he said in the first place..
"China is located next to us, which accounts for half of the world's coal consumption, 67% of China's energy consumption is coal, and the republic buys it from all its neighbors. In addition, it should be noted that we are likely to be able to produce coal longer than oil," Valery Bessel assured.
"In addition to China, we sell coal to India, Japan, South Korea. At the same time, it should be noted that if in the oil and gas market we are represented very well, then the situation on the coal market is different. Once we had one of the world's most powerful production bases, and it would be right to restore it now,as mining and processing of coal could become one of the locomotives for the development of our economy," the expert stressed.
A leading analyst of the National Energy Security Fund, a lecturer at the Financial University under the Government of the Russian Federation, Igor Yushkov, also stressed that in connection with the significant global consumption of coal, Russia can confidently increase its production. "Russia has large coal reserves, we are second only to the United States with 17.6% of the world's reserves. Our production is around 185 million tons in oil equivalent per year. We are not leaders in extraction - China, Australia, India and Indonesia produce more coal, just like the U.S., Poland and Kazakhstan. And look, the main critics of coal in Europe are those countries that do not have their own coal reserves," he said.
"Russia consumes a significant share of its coal, which is mainly used for power generation. The prospects for our coal industry are quite interesting, but we will need to modernize our mines, make them safer and more technological. We also need lower tariffs for transportation by rail. If the government takes measures to stimulate these tariffs, then the coal industry situation will be rather good," Igor Yushkov concluded.
