Investment in coal mining to be raised

Economics - 13 February 2012, Monday 11:57

KYIV (QHA) - In 2012, Ukraine’s Ministry of Energy and Coal Industry plans to attract investment of UAH 3.726 billion (USD 1 - UAH 7.99) in coal mining, Ukrinform has reported citing the Deputy Minister Ihor Popovych.
According to him, in 2011, the technical re-equipment and modernization of coal mining companies through alternative mechanisms received UAH 1.7 billion of investment, or 129 million more than in 2010.
“In 2012, we plan to attract UAH 3.726 billion of investment. In particular, by lending, issuing coal mining company bonds and cooperating with foreign companies,” the minister said.
He also noted that attracting private investment in the mines, which were previously funded by the state, will make it possible to reallocate budget funds for other state coal mines, which will increase their attractiveness to investors and will contribute to an increase in coal production.
Government investment in technical re-equipment of mines will give an opportunity to increase coal production by 26.7 million tons, Popovych stressed.
He added that in the near future the government should approve a list of state-owned energy objects that can be granted on lease or concession.
Coal production in Ukraine in 2011 increased by 8.8% to 81.8 million tons.

 
QHA