Vladimir Putin presented a development programme for the coal industry at a meeting in Kemerovo.
On January 24, Prime Minister Vladimir Putin called a meeting in Kemerovo on the development of coal mining in Russia. In 2011, coal output of 336 million metric tons exceeded the Soviet-era record. However, a sharp growth in production led to shipping problems, as the railway has limited capacity and the load on warehouses is three times the regular level. Therefore, Russian Railways (RZD), Vnesheconombank (VEB) and fuel producers have signed an agreement aimed at arranging an uninterrupted supply. The agreement involves building more railway links and optimising the load on the existing transport network.
This year, the government set a guideline to boost coal production to 400 million tonnes. However, due to transport limits, the mining companies were forced to cut production instead. Their warehouses are full, and they have to sell what they have first. According to General Director Andrei Bokarev, the Kuzbassrazrezugol coal company still has 5.5 million tonnes of coal stockpiled, while its base storage capacity is 1.8 million tonnes. Therefore, the company has been forced to cut production by 2-3 million tonnes in 2012. In addition to the economic risks, the excessive amount of stockpiled coal also poses a fire hazard. Coal can ignite spontaneously if stored in large volumes.
"The signed agreement is aimed at developing new projects which will be financed with loan resources rather than government money," Bokarev said. "One project is a freight-only rail link connecting the Urals with Murmansk."
Deputy Prime Minister Igor Sechin told Izvestia that the agreement not only encourages new railway projects but also encourages using the existing transport network more efficiently.
"This is a key agreement aimed at increasing freight transport volumes," Sechin said. "Russian Railways will use financing tools to expand its infrastructure. This includes an increase in the number of trains and railcars as well as broader use of radio frequency identification and the GLONASS navigation system."
New communications technology will enable the railway to cooperate more efficiently with a greater number of small and medium-sized railcar owners. Most of last summer's problems with coal shipments from Kuzbass and grain shipments from southern Russia were due to lack of coordination.
The prime minister presented a new programme to develop the coal industry until 2030. This document, coupled with the transport agreement, will allow coal companies to boost production by 100 million tonnes to 430 million tonnes per year.
"It is important that these plans are fulfilled despite the ongoing political agenda and a possible government reshuffle. I would like business leaders to bear in mind that these instructions are to be fulfilled by May, 2012," Putin said.
Anastasia Novikova
