After the tragedy at the Raspadskaya mine that claimed 68 lives, the company made the decision to proceed with the extraction of semi-solid coal from the MUK-96 mine and the Razrez Raspadsky open pit.

In the first half of 2010, coal company Raspadskaya saw a considerable reduction in production activity following one of the largest mining accidents in Russia. Altogether OJSC Raspadskaya was able to produce 4.778 million tons of raw coal in the first half of the year. Second quarter production results of 1.747 million tons were 42 percent less than production figures in the first quarter. These results, however, do not appear to be low if figures from the previous year of production are taken into account. In the first half of 2009, raw coal production was 4.17 million tons. 

The volume of coal concentrate sold in the first half of this year – 3.77 million tons – was down 20 percent  in relation to the results for the second half of 2009. Even while exports rose by 2 percent to 1.223 million tons, domestic sales decreased 28 percent to 2.554 million tons. In the three-month period from April to June, Raspadskaya sold some 1.544 million tons of coal concentrate, 31 percent less than in October, November, and December of last year. Supplies under domestic contracts for the second quarter plummeted 38 percent to only 974 000 tons. Exports in the second quarter were down 13 percent to 570 million tons.

The mean of the weighted price for concentrate in the first half of 2010 was 3 238 per ton, 53 percent higher than in the same period of 2009. The price in the second quarter was RUR 3 629 (with delivery FCA Mezhdurechensk).

According to Gennadiy Kozovoi, the director general of Raspadskaya, the coal company will supply domestic consumers under monthly contracts, as the market situation on the coke and steel markets remains uncertain. In the middle of the summer, the price of coal was around RUR 3 800 per ton for domestic purchasers.

The decrease in production of raw coal and the sale of concentrate is entirely attributable to two catastrophic explosions that killed 68 people at Raspadskaya mine on May 9, 2010. The Raspadskaya mine is currently offline. The company continued to supply coal products to major Russian industrial users throughout early summer, including to Evraz Group, Magnitogorsk Iron & Steel Works, and Novolipetsk Steel.

Raspadskaya Coal Company started the extraction of raw K and KO coal at the Kokosovaya mine that it acquired from Evraz in April. In the second quarter, the sales of the hard-coking coal products were 21 000 tons.

In the first quarter of the year, the Raspadskaya mine was responsible for 76 percent of the company’s total output. After the tragedy, the company made the decision to proceed with the extraction*of*semi-solid coal from the MUK-96 mine and the Razrez Raspadsky open pit. The production from the two sites is expected to be

350 000 tons per month. Coal concentrate supplies to the domestic market resumed in June at a steady rate of 255 000 tons per month. Coal concentrate supplies in May were 355 000 tons. Prior to the accident at the Raspadskaya mine, the company produced 950 000 tons of semi-solid coal and sold

760 000 tons of coal concentrate every month. 65 percent of the company’s production was destined for the domestic market, and the remaining portion was shipped to foreign consumers.