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russian coal Russian Coal Producers Invest in Operations The world's fifth largest coal producer has a government backed plan to grow and optimize production through 2030 BY VLADISLAV VOROTNIKOV In the Kuzbass region, the Zarechnaya longwall mine produces about 5 million mt, which is washed at the Sputnik prep plant (above). Russia is one of the world's leading coal producers. It's estimated to have onethird of the world's coal resources and one-fifth of explored reserves—in total 193.3 billion metric tons (mt). This figure includes 101.2 billion mt of brown coal, 85.3 billion mt of bituminous coal (including 39.8 billion mt of metallurgical grade coal) and 6.8 billion mt of anthracite. The reserves held by Russian coal companies amount to nearly 19 billion mt, which includes 4 billion mt of coking coal. Russia is the fifth largest coal producer with more than 320 million mtpy. At current production rates, Russia could continue to supply coal for the next 550 years. Russia has 228 coal producing companies (91 underground mines and 137 surface mines). Almost all coal mining in the country is conducted by privatelyheld enterprises. Coal processing is carried out by 49 preparation plants and two major sizing facilities. Coal is produced 38 www.coalage.com in seven federal districts, 25 regions, 16 coal basins and 85 municipalities of Russia, 58 of which are towns that were developed to support the mines. The industry employs about 200,000. The coal industry plays a huge role in the energy balance of the country. Coal is widely used to generate electricity in Russia, accounting for more than 25% of the total capacity. And, the share of coal used in thermal power plants has been steadily increasing over the last years. According to the strategic development plans for the industry, this share will eventually reach 31%-38% by 2020. In addition, the demand for coking coal in recent years has increased significantly. Three major producers account for about 57% of the coking coal market, Evraz Group, Sibuglemet and Southern Kuzbass. They also produce up to 70%80% of hard and semi-hard coal, which is considered the most valuable for the Russian energy industry. In 2012, Russian President Vladimir Putin expressed a direct interest in developing the Russian coal industry. Putin believes that coal mining has a strategic importance for the Russian economy. He also understands that in the next decade, the demand for coal both in Russia and in the world will dramatically increase. "Our coal industry, related industries, transport infrastructure must be ready to meet that demand. We must not only maintain, but expand our position, including prospective markets in the Asia-Pacific region. This means that today we need to clearly understand where and how we plan to mine coal, as well as how to manage the logistics and how to develop engineering capacities," Putin said. An Industry Set to Expand Coal production in Russia in 2012 amounted to 353 million mt, an increase of 4.7% compared to 2011, according to a March 2013