Ukraine To Change Power Consumption Structure.

Prime Minister Yurii Yekhanurov has announced Ukraine will cut gas consumption to a minimum by using coal as its main energy resource. Ukraine has the 8th largest coal reserves in the world, over 117.6 bln mt (~1,470 years of mining at 2004 levels). Proven reserves (those, which can be mined economically) totaled 56.7 bln mt in 2005. Coal’s share in the domestic energy balance was 25.4% and almost 98% of the coal used coal was mined domestically in 2004. Concorde Capital: As Ukraine plans to increase its energy independence it will have to improve its coal mining status. Presently Ukraine?s Energy Development Program envisages the doubling of coal extraction by 2030. This significant growth will be achieved by a large scale privatization program in 2006-2007. According to our estimates extraction amounted to 60 mln mt in 2005.