Pavlohradvuhillia and Dobropilliavuhillia incorporated into DTEK plan to increase run-of-mine (ROM) coal by 10-15% in 2017, DTEK CEO Maksym Timchenko has said in an interview with Interfax-Ukraine.

He said that the Pavlohradvuhillia production target for 2017 is 19-20 million tonnes (a rise of 3.3-8.7% on 2016), and that for Dobropilliavuhillia – 3.8 million tonnes (a rise of 65.2%).

He said that if investment is made into these coal companies, in the future they can produce 25 million tonnes of coal every year.

"If we reach ROM coal production of around 25 million tonnes for these two companies, this would be enough, according to our calculations," he said.

Timchenko recalled that when Pavlohradvuhillia was bought in 2005, the enterprise annually produced around 10 million tonnes of coal, while today production has reached almost 19 million tonnes.

"Gas coal in our country is mainly the result of our investment in the development of the coal business. It exceeded $2 billion in 10 years. This is the answer to the question where borrowed funds are spent and what is the effect. Today we are balancing our needs via investment into Dobropilliavuhillia and Pavlohradvuhillia," he said.

"Coal production is capital intensive business. One must permanently invest to have enough coal, not speaking about the increase of production by 1-3 million tonnes. In the conditions when there is an acute need in boosting production, the issue of considerably increasing investment is not even a strategic choice, but the vital necessity. Large investment is required for sinking, maintaining production and overland infrastructure," Timchenko said.