DTEK to acquire coal mine in Russia

The Donbas Fuel and Energy Company (DTEK), the energy wing of System Capital Management, is considering the acquisition of Chikh Coal Mine in Russia, said an Interfax article, which cited the office of Vladimir Chub, the governor of Rostov region, where the coal mine is located. According to Chub, the plans to buy Chikh Coal Mine were announced by DTEK CEO Maxim Timchenko. The mine offers DTEK anthracite reserves in the amount of ~50 mln mt. DTEK’s final decision on acquisition of the coal mine is expected in June. Alexander Paraschiy: DTEK-related coal mines produce mainly light coal suitable for its Kurakhov and Zuiv power plants, while DTEK’s Luhansk power plant is designed to burn anthracite. Purchasing the anthracite mine will fill a gap in DTEK’s coal-electricity chain, increasing the reliability of coal supply and preserving the competitive advantages of its power plants on the wholesale market.