13:51 02.12.2014

DTEK to buy remaining three ships of coal from South Africa – Prodan

2 min read
DTEK to buy remaining three ships of coal from South Africa – Prodan

Privately owned DTEK is to buy about 250,000 tonnes of coal from the South African Republic, which was originally contracted by state-run Ukrinterenergo for state-run power generating company Centrenergo's thermal power plants, Ukrainian Energy and Coal Industry Minister Yuriy Prodan said.

"These are ships number four to six, which Centrenergo decided to give up due to inspections," he told reporters in Kyiv on Tuesday.

Prodan said DTEK was mulling over talks on further purchases of coal from the South African Republic because the situation with the supply of Russian coal is uncertain.

As was reported, the MBA Rosaria vessel with the fourth batch of 84,600 tonnes of South African coal on board is off the harbor of the Illichivsk port.

Two more ships with coal from the South African Republic are expected to arrive in Ukraine in December 2014: The Rosco Poplar bulk carrier has 77,800 tonnes of coal and the Bottiglieri Sophie Green bulk carrier has 84,000 tones of coal.

Centrenergo planned to buy 250,000 tonnes of coal from the South African Republic at a price of $86 per tonne ($110-112 per tonne with transportation and other costs) by the end of 2014.

Prosecutors interrogated the ministry's high-ranking officials and the top management of Ukrinterenergo and Centrenergo as part of an investigation into coal shipments from the South African Republic and the financing of coal enterprises in the regions that are not controlled by Kyiv now.

Prodan earlier announced that the investigation made the coal seller – U.K.-based Steel Mont Trading Ltd. – give up further supplies under the previously concluded contract due to the risks that the buyer may fail to pay or shipments may be blocked.

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