Coal Energy coal production drops in November

Coal Energy’s total coal production in November dropped 3.4% m/m to 66 kt. The output decline was driven by lower mining in both the thermal and coking coal segments, by 4.4% m/m and 8.8% m/m respectively, while coal production from waste recovery increased 5.6% to 12.2 kt. If compared to November 2012, total coal production declined 58% yoy, caused by an underground mining plunge of 64% yoy, and somewhat counterbalanced by an increase in coal production from waste by 56% yoy.

In other news, four miners were killed in an accident at Coal Energy’s Sviato-Pokrovska mine on Dec. 16. A methane mixture exploded in the mine at a depth of 320m, according to the preliminary results of the investigation. The mine is considered to be low-methane (below 5 cm of methane per ton of coal). The Sviato-Porkrovska mine, which will be temporarily closed, is among ten mining assets of Coal Energy, which provided 1% of the company’s underground coal mining during 1QFY14.