BYuT UKRAINE
GOVERNMENT PORTAL
INFORM NEWSLETTER
Pm urges extra investment in coal mining
02 September 2008
Published in
Inform
issue #83
See the full issue here.
Prime Minister Yulia Tymoshenko has pledged to increase funding for Ukraine’s coal mining industry and increase the salaries and benefits for miners and their families. Attending a ceremony to open a new mine shaft at the Rental enterprise coal mine in the Luhansk region, she said that it was her intention to devote the first plenary session of the Verkhovna Rada to adopt amendments to the State Budget that would secure extra funding for the coal mining sector. An additional UAH 3.1 billion has been earmarked for improving productivity with another UAH 485 million for salaries and social benefits.
Remarking on Miner’s day – the professional holiday to honour Ukraine’s miners – Ms Tymoshenko said, “If we really want to celebrate Miner’s Day then we should not “demolish” these laws but adopt them on Wednesday and sign them into law.”
The government is keen to overhaul Ukraine’s coal mines as an essential part of its diversification plan to lessen its dependence on imported natural gas. Recognising that some of it antiquated and dangerous mines need to be closed, Coal Industry Minister Viktor Poltavets said that he expects 16-18 mine to close this year. At the same time he announced plans to create three new mines in the Lviv region (Chervonohradska), Donetsk region (Krasnolymanska-Hlyboka) and Luhansk region (Novosvitlivska).
Increased Production
Ukraine expects to increase its coal production by 4 million tonnes this year. According to Prime Minister Tymoshenko “in the first 8 months of the year we increased coal mined by 2.5 million tonnes.”
This improvement in performance has come as a result of increased investment in the sector. However huge levels of domestic and foreign direct investment are needed if Ukraine is to raise the standard of its coal mines to Western European levels.
President Viktor Yushchenko appeared to endorse the government’s position, saying that private investors have a key role to play in helping Ukraine to reform the sector. Speaking in Krasnoarmiysk, in the Donetsk region, he said, “The Ukrainian government and the Coal Ministry must do everything to improve today what we have been speaking about for years. This is what is currently necessary for miners, the coal industry and the state.”
Ms Tymoshenko stated that aside from state and private investment in the mines, there was a need to recognise the strategic contribution made by miners in helping Ukraine to meet its energy requirements. The premier advocates plans to increase the salaries of miners by up to 30 percent, improve pensions and hold a parliamentary discussion on the provision of free education and entrance to educational establishments for miners’ children.
See the full issue here.
Prime Minister Yulia Tymoshenko has pledged to increase funding for Ukraine’s coal mining industry and increase the salaries and benefits for miners and their families. Attending a ceremony to open a new mine shaft at the Rental enterprise coal mine in the Luhansk region, she said that it was her intention to devote the first plenary session of the Verkhovna Rada to adopt amendments to the State Budget that would secure extra funding for the coal mining sector. An additional UAH 3.1 billion has been earmarked for improving productivity with another UAH 485 million for salaries and social benefits.
Remarking on Miner’s day – the professional holiday to honour Ukraine’s miners – Ms Tymoshenko said, “If we really want to celebrate Miner’s Day then we should not “demolish” these laws but adopt them on Wednesday and sign them into law.”
The government is keen to overhaul Ukraine’s coal mines as an essential part of its diversification plan to lessen its dependence on imported natural gas. Recognising that some of it antiquated and dangerous mines need to be closed, Coal Industry Minister Viktor Poltavets said that he expects 16-18 mine to close this year. At the same time he announced plans to create three new mines in the Lviv region (Chervonohradska), Donetsk region (Krasnolymanska-Hlyboka) and Luhansk region (Novosvitlivska).
Increased Production
Ukraine expects to increase its coal production by 4 million tonnes this year. According to Prime Minister Tymoshenko “in the first 8 months of the year we increased coal mined by 2.5 million tonnes.”
This improvement in performance has come as a result of increased investment in the sector. However huge levels of domestic and foreign direct investment are needed if Ukraine is to raise the standard of its coal mines to Western European levels.
President Viktor Yushchenko appeared to endorse the government’s position, saying that private investors have a key role to play in helping Ukraine to reform the sector. Speaking in Krasnoarmiysk, in the Donetsk region, he said, “The Ukrainian government and the Coal Ministry must do everything to improve today what we have been speaking about for years. This is what is currently necessary for miners, the coal industry and the state.”
Ms Tymoshenko stated that aside from state and private investment in the mines, there was a need to recognise the strategic contribution made by miners in helping Ukraine to meet its energy requirements. The premier advocates plans to increase the salaries of miners by up to 30 percent, improve pensions and hold a parliamentary discussion on the provision of free education and entrance to educational establishments for miners’ children.
BYuT officials have campaigned for miners to be paid
realistic salaries and for an end to piecemeal
payment where miners are only paid if coal is
produced. The latter practise puts an onus on miners
to work in sub-optimal and sometimes dangerous
conditions. The recent disaster at the Karl Marx coal
mine near Yenakiyevo city, in the Donbass, killed
miners believed to have ignored an order closing the
mine due to safety violations.
Gas explosions, particularly those from methane seepage, have plagued many of Ukraine’s deep-bed coal mines. About 75 percent of the country’s 200 coal mines are classified as dangerous due to leaking methane. Yet in many instances this greenhouse gas may be
recovered and even used to provide electric power. Indeed, Ukraine has become a regional leader in installing the latest technology to expand the use of recovered methane gas for on-site power generation.
The JSC Coal Company Krasnoarmeiskaya Zapadnaya is the latest in Ukraine to announce the modernisation of its coal mining operations and signed a framework agreement with GE Energy. Under the agreement, JSC plans to install up to 20 of GE's ecomagination-certified Jenbacher coal mine gas-fuelled cogeneration units. The engines will recover methane gas to generate about 129 MW total power output – enough to satisfy the mine's on-site power and heat requirements. The initiative will also reduce site emissions and support workplace safety initiatives. The privately owned mine is located near the town of Krasnoarmeisk in the coal-rich Donetsk region.
“This is a step in the right direction. Ukraine needs more of this type of investment to drag its mines into the twenty-first century,” said an energy trader based in London.
Energy Independence
Coal is only one element of Ukraine’s plans for greater energy independence. Attending the opening of the Novokostiantynivsk field uranium-ore extraction facility near the village of Oleksiivka in the Malovyskivskyi district of the Kirovohrad Oblast, the premier remarked on the importance of nuclear power to Ukraine’s future energy mix.
Witnessing the extraction of the first tub of uranium-ore, the premier said it was a major step in building Ukraine’s own nuclear fuel-cycle for the country. “This will help guarantee energy independence for the state,” she said.
Ukraine currently supplies about 30 percent of its uranium-ore needs. In the future it plans to be 100 percent self-sufficient in extracting and processing uranium-ore for its nuclear power industry.
Gas explosions, particularly those from methane seepage, have plagued many of Ukraine’s deep-bed coal mines. About 75 percent of the country’s 200 coal mines are classified as dangerous due to leaking methane. Yet in many instances this greenhouse gas may be
recovered and even used to provide electric power. Indeed, Ukraine has become a regional leader in installing the latest technology to expand the use of recovered methane gas for on-site power generation.
The JSC Coal Company Krasnoarmeiskaya Zapadnaya is the latest in Ukraine to announce the modernisation of its coal mining operations and signed a framework agreement with GE Energy. Under the agreement, JSC plans to install up to 20 of GE's ecomagination-certified Jenbacher coal mine gas-fuelled cogeneration units. The engines will recover methane gas to generate about 129 MW total power output – enough to satisfy the mine's on-site power and heat requirements. The initiative will also reduce site emissions and support workplace safety initiatives. The privately owned mine is located near the town of Krasnoarmeisk in the coal-rich Donetsk region.
“This is a step in the right direction. Ukraine needs more of this type of investment to drag its mines into the twenty-first century,” said an energy trader based in London.
Energy Independence
Coal is only one element of Ukraine’s plans for greater energy independence. Attending the opening of the Novokostiantynivsk field uranium-ore extraction facility near the village of Oleksiivka in the Malovyskivskyi district of the Kirovohrad Oblast, the premier remarked on the importance of nuclear power to Ukraine’s future energy mix.
Witnessing the extraction of the first tub of uranium-ore, the premier said it was a major step in building Ukraine’s own nuclear fuel-cycle for the country. “This will help guarantee energy independence for the state,” she said.
Ukraine currently supplies about 30 percent of its uranium-ore needs. In the future it plans to be 100 percent self-sufficient in extracting and processing uranium-ore for its nuclear power industry.