Mining industry of Ukraine, in the state in which it worked a year ago, can stop its existence, – considers Mr. Maksim Tymchenko, DTEK Director General.

«Currently the power system of Ukraine is out-of balance, a heat-generation rate meets mineworkers demands by 50%, every day we see spontaneous strikes Ukraine wide with the same rhetoric – do not destroy mining industry, balance the situation, take all management into your hands», – stated  Mr. Maksim Tymchenko, DTEK Director General during the press conference at «Ukrainian News».

He called to form a power balance for 2015. «Talk that we need to get ready for the next winter, the governing body considers unimportant. They say that they will examine and sort it as it was done last winter. No, we will not. This winter was warm, and we had a power reserve at our warehouses and there were some funds to pay for imported energy resources», – stated Mr. Tymchenko.

DTEK Director General paid attention that last year the company was the first that raised an issue regarding difficulties during the autumn and winter period. «Currently a lot of managers award themselves, report how well we passed the winter. If we remember August 2014, the DTEK was the first company which stated that we would have the coal deficiency and fan electricity shutdown», – said Maksim Tymchenko.

He mentioned that the company has increased the coal rank “G” production volume – million of MT for the last year, loaded power-generating units as much as possible. «They used to operate in the mode in which the thermal generation had never worked. We were renovating the destroyed infrastructure. The most terrible thing is that 28 people died during this work to pass that winter and provide people with heating», – said Maksim Tymchenko.

According to him DTEK Company hoped for support from the Ministry and the Governor. «But in fact DTEK was accused of monopolism. New word «de-oligarchization» appeared», – said Maksim Tymchenko.

He mentioned that authorities insisted on the reduction of the thermal generation rates that threatened with huge losses. «We are said: your rate should decrease. Against the background that the estimated rate of hydropower engineering will be 0.84 kopecks in April, and a thermal power engineering which burns coal – 0.82 kopecks. The water costs more expensive than coal», – he said. According to him, economically feasible price for the thermal generation is 1.12 UAH.

«In spite of the fact that for the first time in the history Ukraine has started importing Russian power, they say that it needs to provide “competitiveness” with DTEK. But our rate is effective of 0.60-0.65 kopecks, and we have to pay 0.90 kopecks to Russia upon 100% payment», – he said.

Maksim Tymchenko also described the situation in the coal production area. «The coal price is 500.00 UAH per MT, the coal from the Republic of South Africa is imported at the price of 2,000.00 UAH per MT, from Russia – 1,800.00 UAH per MT, and the payment is made in 100% currency. We are ready to pay to Russian, Australian, African miner 2,000.00 UAH per MT, but we do not have 1,500.00 UAH for our mineworker», – he said.

At the same time DTEK is ready to procure the entire coal at L’vovg-Volyn Area (the Western part of Ukraine) at the price of 1,500.00 UAH per MT and make direct agreements with other producers of coal. According to Tymchenko, mineworkers are requesting the Minister about the same things – to give them opportunity to sell coal to DTEK under direct contracts at the price of 1,500.00 UAH and not at the price of 1,100.00 UAH with 80% Partial payment, when their cash is only 800.00 UAH.

In his opinion, the declared or stated price of 1,100.00 UAH per MT by company “Coal of Ukraine” does not agree with the reality. 1,100.00 UAH is stated only on the paper. Prime Cost is from 1,500.00 to 2,000.00 UAH per MT at the state-owned collieries», – said Mr. Tymchenko.

According to him, the government subsidy has not been provided for this year. «This naturally should be reflected in the coal cost and the thermal generation rate which consists of 80% of coal cost», – mentioned Mr. Tymchenko.

In DTEK Director’s opinion currently there are two ways on which the situation in the energy sector can develop. «The way on which we are moving now is 500 000 MT of coal rank “G” at warehouses when about 50 000 MT are burnt out daily», – he said.

According to Mr. Tymchenko the situation with anthracitic coal ranks is critical now since it’s impossible to deliver it. «Half thermal plants operate at the minimum equipment, and half with a coal rank “G”  will come to the floor level of generation», – he said.

As of today it turned out a power shortage of 2000 megawatt in the country. «It threatens a fan power supply shutdown of the industry», – stated Mr. Tymchenko.

     He applied to the Ministry of Power and Coal Mining Industry of Ukraine as well as to the National Governor with request to turn their face to the industry and to those mineworkers who make protests, and make up a balance to understand which companies and how much power they produce and at what price.