Working below, we only look up

Of course, it is not easy to discern the dependence of the world economy on coal from a cozy European office. But in the hot densely populated countries of Asia and Africa, where millions of people do not have not only air conditioning, but even light and fuel for cooking, the attitude towards coal is completely different. They are waiting for the construction of thermal power plants like manna from heaven, and it is no coincidence that the focus of world coal consumption is shifting to these countries. Today, China, India and Southeast Asia consume 75% of all coal produced in the world – for a record year for the coal industry in 2022, this is no less than 8.3 billion tons! The European Union and the United States consume 10% of the world’s total, and their share will only decrease.

We are well aware of these trends, so last year’s European coal embargo was not a disaster for us. Although we have created a lot of problems in the form of the need to build new supply chains, to clear the bottlenecks of the railway infrastructure, to build our own bulk carrier fleet and other tasks. But all of them, thank God, are solved.

In a short time, SUEK, in the face of an acute shortage of infrastructure at the Eastern Landfill, managed to rebuild logistics to increase coal supplies to the east. All the coal that previously went to Europe found its buyer. SUEK’s deliveries to China, India, South Korea, Morocco, and Turkey have increased many times over, and buyers have appeared on the new markets for us in Africa, Southeast Asia, and the Middle East. In the first half of 2023, SUEK’s export shipments to the east increased by 16% compared to 2022. Transportation of coal to land border crossings on the Russian-Chinese state border increased 3.8 times, reaching 1 million tons.

The domestic, Russian market, where a reasonable diversification of generation sources is the basis of energy security, has not sank at all. Moreover, in the conditions of the growth of industrial production (and the need for import substitution greatly contributes to this) and the low water of Siberian rivers, coal stations again had to go to the aid of water and gas.

Stable demand in the foreign and domestic markets creates a solid basis for investment in the development of coal enterprises, solving the accumulated social and environmental problems of coal mining regions over the years. Neither the wailing of climate activists, nor price fluctuations or sanctions prevent us from seeing the main thing: people still need coal, technologies for its extraction and processing are constantly developing, the industry continues to be in its growth phase. Even being at the bottom, not being able to charter and insure ships, receive payment for the delivered cargo, buy equipment and components through the usual channels, we saw this prospect and worked to solve all these unprecedentedly complex tasks. And they didn’t lose their spirits. Probably because it is generally characteristic of miners: working deep underground, thinking about sunlight.

The difficult 2022 ended for SUEK in a completely different way than external experts predicted at the beginning. Coal production amounted to 114 million tons and exceeded the results of a relatively calm 2021; exports decreased, but due to the positive price situation, it made it possible to obtain an investment resource for the development of enterprises that are favorably located relative to the eastern sales markets. SUEK has retained the 4th place in the world in thermal coal supplies and has every chance to compete for a prize. This year, in the face of continued sanctions pressure, a sharp decline in world prices and difficult logistics, there is again a slight increase in production, exports and domestic supplies. This is not a miracle, this is the work of market mechanisms, the experience and professionalism of the team, and an effective investment strategy. And the best miners in the world, who in a few days are preparing to celebrate their professional holiday – Miner’s Day.

At SUEK, this first officially approved in the country and the most revered professional holiday has never been celebrated with tears in our eyes. We have no time to be sad, we need to move forward and prove our leadership in the Russian market with daily pressure. What we actually do.

In the eastern regions of Russia, where we do not have severe logistical restrictions, the company sets the task of increasing production capacity, accelerating the modernization of equipment, building social and transport infrastructure. In Buryatia, where high-quality low-ash coal is mined, which is in demand in the premium markets of Southeast Asia, we are increasing the total capacity of the Tugnuisky and Nikolsky open pits to 18 million tons per year. By the way, in the first days of August, a world record for overburden loading was set at the Nikolsky open pit, the crew of the BUCYRUS-495HD excavator shipped 2,185,000 m3 in a month. For the miners, this labor victory creates a special emotional background for the miners’ holiday.

At the same time, the construction of modern treatment facilities continues in Buryatia, the water from which we plan to use for the needs of local reclamation – this is an innovative project for the utilization of quarry water “Agropark – Tugnuiskaya Dolina”, which can be replicated in other mining regions of the country.

Projects to increase production capacities are also being implemented in the Zabaikalsky, Khabarovsk and Primorsky Territories, very serious investments are directed to this. Moreover, the development of coal mining enterprises is carried out in conjunction with the development of energy, transport and social infrastructure.

Thus, in the Primorsky Territory, the increase in capacity and the technical re-equipment of the Luchegorsky open-pit mine is carried out in parallel with the modernization of our Primorskaya GRES, the largest power plant in Primorye. And in the Khabarovsk Territory, large-scale work is underway to increase the capacity to 40 million tons per year of our coal terminal in the port of Vanino, one of the most modern and environmentally friendly terminals in Russia.

In all regions, programs for the development of loading and transport departments are being implemented, including a program for the phased renewal of the locomotive fleet. New directions for coal exports are being explored and developed – the Yenisei River Transport Corridor with access to the Northern Sea Route, the cross-border conveyor belt Zabaikalsk – Manchuria, etc. transport departments.

In Khakassia and Kuzbass, now is the time for the modernization of enterprises, the construction of modern enrichment facilities and the development of mechanical engineering. I am sure that the logistical problems for these oldest coal-producing regions will soon be resolved, and then we will again think about expanding production and setting new records. In the meantime, we are preparing to build two new enrichment plants – at the Vostochno-Beisky open pit in Khakassia and near Kiselevsk in Kuzbass. At the mine. CM. Kirov in the Kemerovo region recently introduced a new set of submersible pumps in the degassing system – thanks to hydraulic fracturing technologies, the return of methane is increased, which will be used for the needs of energy and transport, and the safety of underground work is increased. The equipment, by the way, is Russian-made, real space technology. And there are many such technologies in mining, from monitoring the well-being of personnel to automatic mining.

When it comes to technology, one cannot but recall the large-scale program for the development of its own machine-building capacities, which is being implemented by SUEK within the framework of a specially created Unified Service Company. ESK united repair and machine-building plants serving mining, energy and transport enterprises, and is engaged in the development, production, import substitution of a wide range of equipment and components. Attracting colleagues from friendly countries, specialists from Russian research institutes and enterprises, ESC masters the production of complex equipment that is in demand far beyond the perimeter of SUEK enterprises and even abroad. These are parts for excavators, and conveyors, and electrical equipment, and much more. The quality of ESC products is highly appreciated by experts: for example, at the recent Coal of Russia and Mining 2023 exhibition, our Sib-Damel plant received the Grand Prix for the water cooling unit UVKh-02-01.

Like many other coal companies in Russia, we strive to develop production based on the cleanest technologies that do not harm either the environment or the climate. In this regard, the coal industry is no different from other industries. Methane utilization, quarry and mine water treatment systems, modern electrostatic precipitators and energy-efficient equipment at coal-fired power plants can significantly reduce the carbon footprint of the industry and make coal mining completely harmless to nature and humans.

I have already mentioned the project to use quarry water for land reclamation needs in Buryatia, but this is only one of the many details in our environmental program. In fact, any modernization of enterprises is environmental to some extent. Take, for example, the Berezovsky open-pit mine in the Krasnoyarsk Territory. This is a growing section, this year production is growing one and a half times. But this is not its main characteristic. In 2020, a complex for deep processing of brown coal was opened at the mine, which produces demanded products for oil refining, coke briquettes for metallurgists and smokeless environmentally friendly fuel for the private sector – this is a serious contribution to improving air quality for Krasnoyarsk. In addition, the most modern treatment facilities have been introduced at the Berezovsky open-pit mine, and the water treatment complex has received several awards at all-Russian competitions this year.

And such complexes, the best of their kind, are being built not only in the Krasnoyarsk Territory – in Kuzbass, Khakassia, in all regions of presence. This gives SUEK employees the opportunity to work more comfortably and safely, and residents of the territories to enjoy life in a clean natural environment. And to make this environment not only clean, but also comfortable, SUEK has been financing the development of master plans for the development of cities and towns of presence for many years. Moreover, these plans are being implemented not only on their own, but also on borrowed funds. This year alone, the projects of 9 cities where SUEK has a presence from 6 regions of Siberia and the Far East won the competition of the Ministry of Construction for the creation of a comfortable urban environment. The total investment is almost a billion.

New modern parks, squares, embankments will appear in provincial towns and villages. And this will immediately increase the attractiveness of life in these settlements. It’s good for people, and for us – more potential employees will want to work at our enterprises. Yes, and those who choose a different path for themselves actively participate in our charitable and environmental events, offer their improvement projects. For example, in Kuzbass, the Toothpick ecological marathon organized by us is held annually, which brings together hundreds of participants who collect garbage at tourist sites and tidy up river banks.

Not at all decrepit, but competitive, innovative and caring, the coal industry of Russia turns out to be. Dozens of regions and millions of people are interested in its prosperity and pin their hopes on it. And, rest assured, the coal companies will not let them down. We will widely celebrate Miner’s Day, hold sports days, concerts, solemn events, and we will again mine coal. For the good of the people, in the interests of our entire country.

Congratulations, dear colleagues!