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Ukraine force domestic shortages to import Russian coal - Traders

Coal News - Published on Fri, 19 Sep 2014

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Physical coal traders said that Ukrainian coal market participants have been sourcing low-calorific coal from Russia because of domestic shortages.

Ukraine is traditionally a major coal supplier to Turkey but has become a coal importer since several major coal mines, supplying the country’s thermal coal power plants, were bombed during its geopolitical conflict with Russia.

Vital infrastructure such as railway lines, roads and bridges were also damaged during the conflict, which has made it challenging for coal to be delivered to power plants in Ukraine.

At the beginning of September, the Ukrainian government signed a tender for supply of 1 million tonnes of South African coal.

Ukrainian coal miner and electricity producer DTEK, however, said that it has not imported any coal from non-CIS countries.

In addition, physical coal traders said that it has become extremely difficult to source coal from South Africa because most of the lower quality South African coal is used for domestic electricity production and is not offered into the international market.

Trader said that “We are not hearing any further talks as it seems they [Ukraine] needs low volatile coal which is very hard to source. The may have to turn to Russia to supply which is a bit ironic.”

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Posted By : admin on Fri, 19 Sep 2014
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