Ukraine`s Energy and Coal Industry Ministry plans to spend UAH 25.287 billion, or $US 0.99 billion at the current forex rate, on the reform of state-owned coal mines until 2020, according to the ministry`s coal industry reform program.
Of the funds, UAH 10.572 billion, or $0.41 billion, will be allocated from the national budget.
The ministry expects that funds for coal production subsidies and capital construction with re-equipment at coal mines will be allocated only in 2016 and 2017, and their sum will be UAH 2.1 billion and UAH 3.698 billion respectively. What is more, UAH 980 million is expected to be spent on the commissioning of the first facility of Novovolynska No. 10 coal mine until 2018.
”There will be no state support to [subsidize] production costs and re-equipment of coal mines after 2017,” the ministry said.
The first facility of Novovolynska No. 10 coal mine whose design capacity is 450,000 tonnes of coal per year is expected to be put into operation within 16 months since the launch of its construction.
What is more, the ministry expects that the construction of the second facility of Surhay coal mine whose capacity is 300,000 tonnes of coal per year is to be completed within three years.
”Twenty-two coal mines will be re-equipped, investment will total UAH 15 billion. In particular, eight enterprises will obtain UAH 700 million in state support in 2016,” the program said.
The program also foresees modernization of four coal mines with a total amount of capital investment estimated at UAH 3.8 billion, which is to increase production capacity by 2.855 million tonnes.
”The implementation of the said measures will let [Ukraine] produce 9.2 million tonnes of coal in 2020,” the ministry said.