SUEK predicts continued demand for Russian coal in the Asia-Pacific region
SUEK predicts stable and growing demand for Russian coal in the Asia-Pacific region, as Andrey Melnichenko, Chairman of SUEK’s Strategy Committee, told reporters in Kemerovo on Monday.
‘Asia-Pacific countries are now increasing production and, accordingly, demand for electricity. Coal is the most affordable, economically feasible and, subject to a number of conditions, a very environmentally friendly way to provide their population with unrestricted access to electricity. In the coming decades, demand for coal in this region will only grow thanks to the large-scale construction of highly efficient and “green” coal-fired power plants,’ the company explained to Interfax-Siberia.
According to SUEK, seaborne coal shipments to the Asia-Pacific region will grow by 1.4% in 2019 year-on-year to 792 million tonnes. Firstly, there will be an increase in the consumption of high-quality coal with a calorific value in excess of 5,700-5,800 kcal/kg, alongside metallurgical coal.
‘Our Kuzbass facilities export only demanded high-CV and low-ash thermal coal (6,000 kcal/kg and above) with stable quality characteristics. Given the high productivity of our units, the quality of produced coal and consumer confidence, we are sure that we have every possibility to step up export activity,’ SUEK said.
The company states that, in 2014-2018, 85 billion roubles (over $1 billion) were allocated for the development of coal assets in the Kemerovo region. In 2019, SUEK’s investment is expected to exceed 45 billion roubles (about $700 million).
SUEK is the largest Russian coal producer and has Andrey Melnichenko as the main beneficiary. The company includes approximately 30 coal-mining units, nine processing plants and facilities and mechanical and repair plants in seven regions of Russia, a terminal in the port of Vanino (Khabarovsk region) and the Murmansk Commercial Seaport. In 2018, SUEK produced 110.4 million tonnes of coal.