Does Russia need coal from the liberated Donbass?

13 2023 June 15

After the LPR and the DPR became part of the Russian Federation, the question of the fate of the local mining industry becomes relevant in the light of their full integration. Donbass under Ukraine was in decline, but in fairness it should be noted that it would have degraded without it. Political events, economic The processes and statistics of recent decades show that the further development of the coal industry in the region has become impossible, and the era of miners as a labor guard has passed.

Economic feasibility due to market conditions

You don't have to look far for arguments. The volume of coal consumption is falling on a global scale: for some time now, the world community no longer needs such an amount of black gold as, say, a quarter of a century ago. Export is slow. And inside Russia, with its surplus of cheaper Siberian coal, there is hardly a place for a Donetsk-Luhansk competitor.

So, it seems that the former all-Union stoker will have to extract coal mainly for its own needs. Unless, of course, its infrastructure is reoriented to the production of technologically advanced commercial products instead of classic high-ash solid fuels (for example, coal concentrate, synthetic liquid fuel or thermoantacite). But it will be a qualitatively different situation. We have to admit: Donbass successfully completed an important mission for its time, which is neither good nor bad, this is a given. No, its capabilities have not been exhausted, it's just that they are no longer needed in their previous form, because priorities have changed. In addition, there are additional problems specific to this basin.

Difficult mining and geological conditions

The bowels of the Luhansk region and especially the Donetsk region contain mainly thin layers, on average 1-1,2 m. excavation sometimes exceeds 77 km, where the temperature of host rocks reaches 40 ℃. The Central Donbass is characterized by steeply dipping seams, which negatively affects the productivity of mining. More or less attractive coal facilities serve the relatively young deposits of Dobropolye and Pavlograd (Western Donbass), although they are located on Ukrainian territory.

Costly production is reflected in the cost of the final product, which is one of the highest in the world. The reality is that foreign partners are not ready to pay 200-250 euros/t even for super-calorific Donbass anthracite. Ceteris paribus, it is easier for them to buy a South African "slim", for example, for 150 euros / ton. This is about energy brands. At the same time, I dare to assume that coking coal will still be in demand, but its share in the total production of Donbass is traditionally 3-3,5 times less than energy.

Lack of labor reserves

In the old days, it was not so easy to get a job in the leading underground specialties, especially at a prosperous mine. Starting from 2014, sales and, consequently, production fell, and the outflow of personnel began. Therefore, now the picture is different: there is an acute shortage of labor force, the number of vacancies goes into the thousands. Part of the miners went in search of a better life in Kuzbass and Yakutia, the rest are fighting. If things go like this, soon there will be no one to extract and process coal.

Non-ecological raw materials and production

Coal is reputed to be the dirtiest energy source. The current trend is such that in order to comply with the Kyoto Protocol, even less toxic hydrocarbon fuels from oil and natural gas, the world civilization prefers to refuse whenever possible. With some reservations, nuclear energy is optimal plus an alternative based on renewable resources. This is ideal, but you will have to strive for it willy-nilly. For the thoughtless policy of pumping out the natural resources of Donbass at any cost is barbarism with a long history, which it is time for the new government to put an end to.

What causes anxiety

Under Ukraine, the predominant part of the industry was on state subsidies, largely thanks to which mining and processing enterprises existed. Conditionally unprofitable production was required by the national industry as a supplier of raw materials, since there was no alternative to the coal monopoly in Nezalezhnaya.

In Russia, the picture is different. With the transition to market relations, the country's leadership, having gradually restructured the industry, eventually completely handed over the mines to private capital (except for Arktikugol). This seemed logical, since in comparison with the self-sufficient oil and gas sector, they looked like outright ballast. Life has shown that denationalization, partial closure of enterprises and curtailment of the mine fund became a step justified from an economic point of view: the domestic economy not only did not suffer, but even recovered to a certain extent. But the social situation in the former mining regions, for obvious reasons, worsened ...

There is no centralized supervision and guardianship of the industry on the part of the state, as in Ukraine, in Russia at the federal level. The Ministry of Energy has a department of the coal industry, but what its specific goals, tasks and functions are is unclear. On the official website of the ministry, the corresponding page is formally available, but there is no relevant information there. By the way, the director of the department, Pyotr Bobylev, has neither work experience in the coal industry, nor specialized mining education.

The road by walking

Given the complex of subjective and objective factors mentioned above, the Russian government faces a difficult task. After the audit and inventory of fixed assets in the returned territories, unpopular decisions will have to be made. It is not an idle question for a region in which mines, processing plants and ore repair plants are considered to be budget-forming enterprises of settlements - where they are located. What to do with the population, what worthy options to offer them? The unsuccessful experience of liquidating Gukovugol and Rostovugol is hardly useful here.

Information

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Sergey Latyshev

+2

13 June 2023 17: 14

It was reported that since 2-3 months ago, the head of the LPR suggested that Putin should privatize all the mines. Like, the miners were called, there is no one to work, it is difficult to sell coal, prices are dumped due to sanctions, only losses .... give them to us.

Moreover, they reported that for some reason small diggers successfully dig and successfully sell in Rostov ...
And earlier, Ukraine and Russia and others bought coal for themselves, even after 14 years, even by smuggling ....
So, a new optimization. Profits - in the pockets of one. Expenses - for the budget and local miners.
strange guest

-2

14 June 2023 07: 30

Close mines - grow corn. They were miners - they will become combine operators. Moreover, the place is already deserted.
Anton Kuzmin

0

14 June 2023 10: 30

Quote: Strange guest
Close mines - grow corn. They were miners - they will become combine operators. Moreover, the place is already deserted.

"Not only all" waste heaps after coal mining are suitable for growing corn! The arable land, although relatively close, will not work without moving.
1. strange guest
  
  +1
  
  14 June 2023 10: 58
  
  Well, why keep unprofitable production? The more harmful. A miner is not the healthiest profession.
Hiker

+2

14 June 2023 10: 47

Russia needs the lithium of the liberated Donbass.
There is lithium per trillion at the Shevchenko field.
Mountain

+4

14 June 2023 12: 07

Introduction. I have been working in the coal industry for 50 years. I am well versed in it in all aspects at a professional level.
About the article. The article, in my opinion, is clearly custom-made by those who promote Kuznetsk coals, and those organizations that have seen and still see Donbass, on the one hand, as a cash cow, and on the other hand, as a territory where you can spend ( cut) a lot of budgetary funds. In addition, when people with a journalistic education try to talk about serious social and production topics, it usually looks bad. To write a really good article, it is necessary, first, to delve into the essence of the issue in detail, and in this case it incorporates many interrelated problems that cannot be solved without system analytics.
In order:
1. The author is wrong when he talks about the futility of coal. First, let's make a reservation right away that coal has two main areas of application: as a fuel for energy, and as a component for metallurgy in the form of coke or coal dust for blowing into furnaces. And oddly enough, the largest coal miner, China, not only does not curtail coal mining, but in 2022 it will. amounted to 4,125 billion tons in commodity terms (10 times more than in the Russian Federation), but also purchases an additional 500 million tons of imports. The question is, why are they doing this? Why is China introducing an additional 28 Gigawatts of electrical capacity, and reconstructing existing coal-fired thermal power plants? Hardly anything to do.
Yes, today there is enough Kuznetsk coal for the needs of Russia, since only the “cutting off” of European exports freed up about 60,0 million tons of coal, and it is impossible to redirect this amount to the East of the country for export to China, for example, due to the overload of the eastern direction. At the same time, it should be taken into account that with the cost of thermal coal mining in Kuzbass at the level of $15-25/t, the tariff for railway transport to any port of Russia, even to the east, even to the south or west, is approximately $45-50 per ton. /T. So we get that Kuznetsk coal in the port, without additional fees and costs for storage and transshipment (and this is up to 35-40 dollars per ton, as in the port of Taman) is already under 80 dollars per ton. The cost of coal with delivery to the thermal power plants of Donbass will be within the same limits, that is, approximately 6000-6500 rubles per ton. And here the next question arises - who will pay such a price, if today, at the price of local coal of 3500-3800 rubles / ton at the Starobeshevskaya and Zuevskaya TPPs, the level of payment for electricity is slightly more than 60%?
2. We have partially touched on the economic feasibility of the coal industry in Donbass, but its main essence is not at all in the profit from the sale of coal, although this is an important indicator, but in the feasibility of the life of the population, citizens of Russia, in this territory. Yes, historically, the Donbass was one of the most powerful resources of the USSR, and a lot of money was invested in it. And this is not only in the coal industry, which was the foundation of the entire Donbass, but also in coal engineering, in coal processing enterprises (coal enrichment, coking plants), in metallurgical plants and related machine-building plants, in various scientific and technological institutes, in the system of higher and secondary specialized education, into a huge infrastructure. Before the collapse of the USSR, the population of the Donetsk region alone was 6,5 million people. Today, a maximum of 1,5 million people live on the territory of the DPR. It is possible, of course, to reduce this population, but then it is not clear why blood is shed on this earth?
Preservation and revival of the coal mines of Donbass is the basis of its existence, as is the well-being of hundreds of thousands of citizens living on this land, and hundreds of thousands who must return home. I am convinced that the climate in the Donbass is no worse than in Yakutia, Vorkuta, Kuzbass. It remains only to start working in mines, and not to sing a memorial service for them.
3. What needs to be done?
To be continued.
Mountain

+3

14 June 2023 13: 16

Continuation of the comment.
Mining and geological conditions in the Donbass are no worse than in Vorkuta or at some mines in Kuzbass. Yes, there are difficulties, but they are all solved if we understand that the economy of any mine depends, first of all, on the applied technological schemes, technologies for driving mine workings and coal mining. Over the past 40 years, they have not been improved, but on the contrary, they have fallen into decay. There are many subjective reasons for this, which clearly manifested themselves in connection with the collapse of the USSR, and the transition of mines under the incredible influence of the private business of Ukraine, as well as objective reasons related to the complexity of mining thin layers. At the same time, it was in Donetsk that they were developing a new technology for extracting coal from thin seams, which was supposed to bring mines to a completely different level, both in terms of economic efficiency and safety. But did anyone need it, except for the developers themselves? Of course not. Of course, such developments require funding. And why, when you can just refine what is available, and simply rob the territory. During the years of independent Ukraine, not a single mine was built in the Donetsk region! In Lugansk, in the nineties, Sukhodolskaya-Vostochnaya was completed, which was 90% ready after the USSR. No new horizons were built, no new shafts passed, and all mine reconstruction projects that had begun were stopped, equipment and materials were looted. Improved that the overhead buildings (mine headframes) began to fall, as in 2011. at the mine. Bazhanov in Makeevka, with the death of 11 people. After the outbreak of hostilities in 2014, many mines were damaged, which the mine workers repaired on their own to the best of their ability. It would seem that Russia should help enterprises. But no, well-known business structures continued to pump out resources from the Donbass, coupled with some influential officials who oversaw the DPR. The newest coal combine is dated from 2012. Since then, not a single combine has been purchased by state-owned coal enterprises. Not a single roadheader was purchased. How to work in these conditions, if the state does not help its enterprises in any way? In total, investments from 2014 to 2021, at the expense of the budget, amounted to a little less than 1,5 billion rubles for 11 state-owned mines, of which 9 mines produce thermal coal and 2 mines produce coking coal. Wage arrears amounted to 4 - 6 months. How can people live, at the same time, in conditions of constant shelling? Who will stand it?
We have developed integrated projects and business plans for the development of 7 mines. The purpose of these plans is to increase the production of these mines from 2,5 million tons per year to 10,5 million tons in commodity terms in 5 years. This implies the reconstruction of mines, with the sinking of new shafts, the modernization of stationary installations, the use of modern and latest technologies in the sinking of mine workings, coal mining, its transportation, processing. For implementation, financing in the amount of approximately 30 billion rubles is required. As a result, we will get an increase in the number of jobs by about 2 times, up to 19 thousand people, a decent level of wages, provision of all social needs of citizens, and the return of people to their native land.
Of course, this cannot be done without the active participation of the state, which should encourage private business to come to the Donbass and invest the required funds. There is a lot of talk about this, how to do it, that is, how to stimulate business structures to a feat. But there is nothing concrete, and moreover, the process of transferring mines to business is hampered at every step by both local officials and Moscow ones. In principle, this is quite expected, since the first leaders of the Ministry of Coal and Energy of the DPR are people with non-core education, and for them the mine is like a black hole in the literal sense. The former, until recently, minister, for almost half a year, solved the issue of paying salaries to miners, constantly feeding them with promises. The new minister has been gone for a month, and how he will deal with this issue is still unknown.
To transfer the mines for long-term lease to private structures, or sell them for a symbolic fee of 1 ruble, a certain regulation or law is needed, which should be adopted in Russia. The DPR cannot solve this on its own. Status does not allow. And from Moscow there is nothing but talk. Apparently they believe that handing over the mines in their current state is to give someone a very generous gift? If this continues for another six months, then there will be nothing to "give". There remains one hope that the head of the DPR Pushilin D.V. will convince the leadership of the country that it is necessary to immediately resolve the overripe issues on state mines. Today there is no time to make revisions and inventories, especially since they have already been done following the results of the last year and the beginning of this year. There should be one solution for mines - they must be transferred and developed. Closing the mines is an expensive undertaking, and at the expense of the budget, but keeping mines alive means reviving the Donbass! There shouldn't be anything else, absolutely!
1. k7k8
  
  0
  
  14 June 2023 16: 00
  
  That's who should be writing articles here, not homegrown analysts with no education. But, unfortunately, this is just a good wish at the level of a cry into the stratosphere. Our "military" iksperds do not have a military education and have never served in the army, supernumerary lawyers give "valuable instructions" to the President and the Council of Ministers, couch warriors lead armies and fronts better than the General Staff, etc., etc. Health and success to you!
2. strange guest
  
  0
  
  14 June 2023 16: 15
  
  It is possible to increase production by 4 times, probably. I believe you. It and Kuzbass can at least double in its cuts. Is there a sales market in the future of these 5 years? Green energy, oddly enough, is developing and consumption, in the first place, of coal will fall. Whether we like it or not. Moreover, taking into account multibillion-dollar investments, Donbass coal will be just gold. Unfortunately. And yes - the economy should be economical. In any setting. If we want to be competitive, we need to develop non-coal generation.
  1. Mountain
    
    0
    
    14 June 2023 21: 24
    
    Coal consumption in the next 20-25 years will remain at the same level. Donetsk coal has always been in demand on the local market - thermal power plants, domestic fuel, coking plants. We still need to actively develop its export. There are certain grades of coal for this. In the DPR, within the current borders, for energy, there is T-grade (lean) coal with a high calorific value, anthracite with excellent export characteristics, coking coal of the Gzh, Zh grades, also with good quality indicators. With a competent marketing policy, all coal will be successfully sold. For example, high-quality anthracite, with a low content of volatile substances of 2,5-4%, with low ash, has a high cost, also because offers cover the demand on the world market only by 65-69%. Donetsk anthracite meets these requirements as a high-quality energy raw material, as well as fuel for pulverized coal injection (PCI) in metallurgy.
    Green energy has its own problems, and it requires significant capital investments. At the same time, let's not forget that there are special increased tariffs for it, as an incentive for development. And they are formed only at the expense of the consumer.
    The developed program for the development of mines assumes that in 5 years they will work with a profit, with the possibility of reproduction at their own expense. Before the war, there were 7 thermal power plants and 7 coke plants in the Donetsk region alone. Now it is not known how many stations and factories will remain operational. At least 2 stations and 3 factories in the DPR are still operating. But they also require repair and increase in production volumes if we want the Donbass to begin to revive. And if you follow the ideas of the author of the article (and they are not new), that Russia does not need coal from the Donbass, then it is necessary to close the metallurgical plants - in Russia there is nowhere to put the metal, and you can not grow bread - in Russia it is also more than required. But this is in no way consistent with the President's directive that it is necessary to stimulate the population as much as possible to return to their land. The question is how to stimulate? Construction of shopping and entertainment centers on the territories of former enterprises?
Mountain

+1

14 June 2023 13: 25

In conclusion to what has been written. If anyone has questions about each of the mines, I can give a qualified explanation.
1. Vasya_33
  
  +1
  
  14 June 2023 16: 28
  
  you have a whole article turned out, not a comment.
  Zen also has:
  
  https://dzen.ru/a/ZIhsss5tF0eVZ107
  1. Mountain
    
    0
    
    14 June 2023 22: 06
    
    Yes you are right. Looked at your link. It became sad. One citizen from Torez knows only about one mine, and there, in the State Unitary Enterprise, there are 3 more. But he knows everything, and he has already determined everything in advance.
Exhauster

0

14 June 2023 15: 14

Considering how many mines were sunk in 2021 in the LPR, there is no need to worry about the future of the coal industry. Because the industry has no future.
prior

0

15 June 2023 10: 43

Does Russia need coal from the liberated Donbass?

A question from the category "Does a mother need her children?".
Who only turns his tongue to such questions?