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10:13
DTEK REDUCES COAL EXTRACTION BY 1.7% IN H1, 2009

Kyiv, July 29 (Interfax-Ukraine) – Companies of Donetsk-based DTEK in January to June 2009 cut coal extraction by 1.7% or 149,700 tonnes year-over-year, to 8.566 million tonnes.

A Tuesday press release of DTEK says that power coal extraction in H1, 2009 went down by 0.7% or by 50,300 tonnes, to 6.962 million tonnes, and coking coal extraction shrank by 5.8% or 99,400 tonnes, to 1.6 million tonnes.

The company said that DTEK managed to maintain high coal extraction thank to the fact that the company's mines have a stable sales market in the form of electricity generating companies and coal export bank on the trail.

The group's concentration plants processed 5.864 million tonnes of coal over six month ending June 2009, which is 0.6% or 33,400 tonnes less year-over-year. Coal concentrate production over the period under review shrank by 4% or 171,500 tonnes, to 4.7 million tonnes.

"The fall in coal concentrate production at the group's concentration plants is mainly linked with special requirements to coal for export. By the end of 2009, DTEK plans to supply around 1.2 million tonnes of coal abroad," the holding said.

Skhidenergo (Vostokenergo) Ltd., which is under DTEK's control, in H1, 2009 reduced electricity transmission by 27.9% or 2.475 billion, to 6.395 billion.

The press service says that OJSC Dniproenergo, where DTEK owns a 47.46% stake, in January to June 2009 cut electricity transmission by 28.4% or 2.085 billion, to 5.257 billion.

The fall in electricity transmission is linked with a fall in demand on electricity in Ukraine due to the industry plunge, DTEK says.

In addition, DTEK's electricity supply companies – Service-Invest Ltd. and OJSC Energovuhillia (Energougol) ENE – in January to June 2009 cut electricity supply by 22.2% or 1.614 billion, to 5.64 billion.

The worsening of the indicators is explained by a fall in electricity consumption by mining and chemical sector companies.

DTEK was created in 2005 to manage the energy assets of System Capital Management (SCM).

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