EU-funded Coal Sector Policy Support Programme experts recommend Ukraine close 29 coalmines by 2016

– Ukraine should close 29 non-productive coalmines by 2016, according to a master plan drawn up as a result of the completion of the EU-funded Coal Sector Policy Support Programme.

According to programme experts, the closure of such number of coal producing companies will require the injection of about UAH 4 billion, and UAH 5 billion more should be funneled into the settlement of social and environmental programs. The closure of one coalmine will take 15-24 months, the experts said.

In their words, Ukraine should carry out an additional assessment of the situation in the coal industry in 2012 and 2013, which could reveal the need to close 27-39 coalmines more, mainly those that produce power-generating coal.

The experts also point out to the importance of legalizing or closing small illegal coalmines in Ukraine.

The Coal Sector Policy Support Programme is based on the 2005 Memorandum of Understanding on Cooperation in the field of Energy between Ukraine and the European Union. The evaluation of 134 mines is the basis of the Master Plan for the Development of the Ukrainian Coal Industry, which includes a coal sector-restructuring programme for the period to 2012, and a forecast to 2017, a road map for attracting investments, complex transformation programme in coal sector developed in accordance with Ukrainian standards.

The master plan will be used by the Ministry of Energy and Coal Industry for the design of the Energy Strategy of Ukraine until 2030, as well as in the Ukrainian Coal Industry Development Program for 2011-2015.

The EU Contractor of the project was a consortium led by Hulla & Co Human Dynamics KG, based in Austria, Royal Haskoning (the Netherlands), GARR (Poland), MWH (Belgium/Great Britain), Kopex (Poland).