http://en.interfax.com.ua/news/economic/415815.html
DTEK energy holding buys 600,000 tonnes of coal in South Africa, the company's press service has reported.
"DTEK confirms the purchase of 600,000 tonnes of coal from South Africa with the option to increase to one million tonnes. The arrival of the first vessel with 75,000 tonnes of anthracite to Ukraine is expected in June. The fuel will be shipped to DTEK's anthracite thermal power plants (TPP), which will be put in operation to maintain the stability of the energy system of Ukraine," the press service said.
The company added this is the first case in Ukraine's history when such significant amounts of anthracite are bought in distant markets in such a short time.
"Thus, DTEK is beginning to form anthracite reserves at its TPPs in preparation for the autumn-winter period of 2017-2018. Currently Kryvy Rih and Prydniprovska TPPs have been suspended for accumulation of anthracite. If it is necessary to cover power shortage in the energy system, the stations will be switched on under the command of dispatchers of Ukraine's united energy system," the energy holding noted.
http://en.interfax.com.ua/news/economic/415778.html
PJSC Kriukov Car Building Works (KCBW, Kremenchuk, Poltava region), the leading Ukrainian producer of railway wagons, has won a tender to deliver 38 compartment cars to PJSC Ukrzaliznytsia, the press service of Ukrzaliznytsia has reported.
The auction was held on April 13, the offer price of KCBW amounted to UAH 875.281 million (VAT included). Kharkiv Wagon Plant also participated in the tender. Its offer price stood at UAH 875.52 million (VAT included).
Thus, according to a press release, the cost of one car amounted to UAH 19.195 million excluding VAT (with the planned cost being UAH 19.2 million excluding VAT).
Under the terms of the tender, the wagons must be delivered by the end of this year.
"We've announced a large-scale renewal of the rolling stock, we are ready to invest funds and we hope the manufacturer will fulfill its obligations qualitatively and on time. The company announced such a big order in an effort to improve the conditions of passenger transportation. Despite the fact they continue being unprofitable and long-haul tariffs have not been raised since October 2014, our goal is to improve service for passengers," the press service said citing Ukrzaliznytsia Chairman Wojciech Balczun.
http://www.interfax.com/newsinf.asp?pg=10&id=747773
April 13, 2017 09:26
Metinvest prepared to replace Russian raw materials with supplies from Canada, Australia
KYIV. April 13 (Interfax) - Metinvest, a Ukrainian steel and mining group, began diversifying raw material supplies in 2014 considering the risks for assets in uncontrolled areas of the Donetsk Basin (Donbass).
"We considered various plans of action in case given risks were realized. We've been working on this since 2014. Therefore, even then we began to diversify our supplies of raw materials that come from areas [not controlled by Kyiv]. There are two key raw material items: limestone and coking coal. For coking coal, we've increased marine imports - we're taking almost all the product of our subsidiary UCC in the United States. Before, we sold about half on the domestic U.S. market, and took half ourselves, but since January of this year we decided to take the whole amount," Metinvest CEO Yury Ryzhenkov said in an interview with NV Business.
He said that Krasnodonugol, which is located in the self-proclaimed Luhansk People's Republic, supplied the group with 8% of its coking coal in 2016, but it can be replaced. The group has already established relations with other suppliers of coking coal, in Australia, Canada and Indonesia, and this coal is now shipped in through the Yuzhny port.
"The third source is that we are buying all the coking coal there is in the controlled territory of Ukraine. Unfortunately, there's not that much of it. This is mostly the Pokrovskoye mine administration, the former Krasnoarmeiskaya-Zapadnaya mine. Everything that we can buy from them, we buy. And the fourth sources is supplies of coal from Russia. Logistically, this is the closest source of coal for us after Ukrainian. A lot is written that this is re-export of Ukrainian coal from uncontrolled territories. This is not so. The coal that we're buying in Russia is of higher quality; such coal is simply not mined in the uncontrolled territories of Ukraine. It's not possible to pass off coal from the Donbass as coal from the Kuznetsk Basin. Therefore, we know exactly what we're taking," Ryzhenkov said.
He also said that Ukraine cannot refuse to buy raw materials that are in short supply abroad, and it needs to have an alternative if Russia suddenly decides to suspend its supplies.
"We'll go to Canada, to Australia and quickly replace this raw material, but if we have the ability to buy quality raw material from Russian suppliers more cheaply, we should do this," Ryzhenkov.
He also said there are four sources from which Metinvest can get limestone, including the Novotroitskoye Mine Administration and Western Ukrainian producers.
"There's also an alternative. We recently made a purchase in the United Arab Emirates. By the main parameters, the raw material is not inferior to Russian, so we already have diversification. There's also the possibility of purchases in Poland and Slovakia, but by quality characteristics their limestone is very similar to Western Ukrainian. Therefore, in terms of diversification of raw material supplies, we've resolved the problem with limestone," Ryzhenkov said.
Asked about estimated losses due to the loss of control over assets in uncontrolled areas of Ukraine, he said it would be appropriate to talk about this once the results are in for the first half of the year.
"The fact that we are now buying higher quality coal - coal from Donbass was of relatively low quality - allows us to produce coke of far higher quality. Yes, theoretically we see a difference of $30 to $50 per tonne between the cost of coal from Donbass and 'marine' coal. But essentially we can offset part of this with higher productivity, by getting higher quality coke. In addition, we've focused on producing high quality iron ore products at our mining assets, with iron content of more than 65%. Now we want to assess the final effect at blast furnaces at our steel plants. I don't rule out that we'll be able to offset a very substantial portion of losses by increasing productivity on higher quality raw materials," Ryzhenkov said.
Speaking about the group's European assets, Ryzhenkov said that Promet Steel in Bulgaria used billets from Enakievo Metallurgical Plant, which is located in the self-proclaimed Donetsk People's Republic. The group is now looking for suppliers of square billets. In March, the group bought square billets for Promet from Ukraine's Kurakhovo-Stal, and is now holding negotiations with ArcelorMittal Kryviy Rih and Belarusian producers of square billets.
"I think that we'll be able to supply this plant with square billets by buying them on the market. Of course, this will be less efficient than producing our own square billets from ore, but nonetheless, it's possible to find this product. We have a project to overhaul the No. 4 continuous casting machine at the Azovstal plant. There's a plan to convert it from a slab to a bloom caster, and in addition to blooms to produce square billets there that can be used at Promet. We're considering this project. I don't rule out that we will accelerate its implementation," Ryzhenkov said.
