Ministry of coal industry says coal extraction will grow by 55% by 2016

The coal extraction will grow by 55% by 2016 to 69 mln mt if all investment projects considered will find financing, said deputy minister of Ministry of coal industry yesterday, according to Interfax. Yegor Samusenko: We view Ministry`s plans as quite ambitious and still expect coal shortage in the mid-term, driven by increased demand for thermal electricity. We estimate electricity output by coal-fired thermal power plants will grow by 52% over the same period, which should result in ~47-48% growth in demand for energy coal. In the mid-term, we favor generating companies with primary share of abundant anthracite coal grades in the fuel mix, Donbasenergo (UX: DOEN UK) and Centrenergo (UX: CEEN UK).