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Ukraine seeks imports of anthracite coal as shortages loom

Ukraine is seeking extra imports of anthracite coal from South Africa and other sources on looming shortages after supplies from Russia and territories controlled by pro-Russian separatists in Donetsk and Luhansk regions were suspended, Energy and Coal Industry Minister Volodymyr Demchyshyn said Friday.

"At the moment, the supply of coal from the uncontrolled territories, as well as from Russia, is limited," he told lawmakers. "Coal stocks at our thermal power plants are currently enough to keep working for at least a month."

The minister said two ships carrying 168,000 mt and 80,000 mt of anthracite respectively, are heading to Ukraine from South Africa and expected to arrive on December 4 and December 12.

"In December we will receive 250,000 mt of anthracite, which will ensure that our energy system is working steadily during the next 45-50 days," Demchyshyn said.

"In these 50 days, we will definitely be able to find a solution to the coal supply issue, including shipments from South Africa and from other suppliers," he added.

Supplies of anthracite to Ukrainian thermal power plants from Russia and from the separatists-controlled territories of Donbass were suspended earlier this week, shortly after Ukraine halted power supplies to Crimea, a Black Sea peninsula annexed by Russia in March 2014.

TWO ATTACKS

Crimea declared a state of emergency Sunday after four power transmission lines were blown up on November 19 and 20 in attacks in the Ukrainian region of Kherson bordering the peninsula.

The attacks left about 1.6 million people without power as Crimea depends on Ukraine for about 80% of its power needs.

Ukraine's coal reserves at fossil-fuel burning power plants fell 1.9% over the past week to about 2.078 million mt as of Monday from 2.119 million mt on November 16, according to the country's power grid operator UkrEnergo.

As of November 23, thermal power plants had 977,900 mt of anthracite and 1.1 million mt of other types of thermal coal in stock, according to UkrEnergo.

Coal is now Ukraine's key energy resource after the country earlier this week suspended imports of natural gas from Russia due to high prices.

Ukraine has been earlier this year facing coal shortages as two-thirds of its coal mines have been shut down due to an armed conflict with pro-Russian separatists over the past 18 months, affecting its major coal-producing areas in the Donetsk and Luhansk regions.

Ukraine is traditionally a major producer of anthracite, which has higher calorific content than other types of coal. Anthracite has been widely used by thermal power plants throughout the country.

But all Ukrainian anthracite coal mines are in those parts of Donetsk and Luhansk regions that are now controlled by pro-Russian separatists.

source: http://www.platts.com