Our objective is to increase supply to and strengthen our presence in the premium, high-margin markets, especially in the Asia-Pacific region. We are growing the share of washed coal within our product portfolio, developing sales of premium sized coal and increasing the trading of semi-soft and hard coking coal with international and Russian metallurgical customers. Current investment in the development of new coal deposits is solely targeted at the most economically efficient projects. We also expect to maintain synergies from association with the Russian electric power industry by signing long-term contracts with energy producers.
How we create value
We create value in a number of ways within four key areas of activity:
processing
Mining
Our cost-efficient mining activities deliver a sustainable supply of high-quality thermal coal. Using open-pit and underground mines, we produce brown and hard coal. By investing in regular upgrades of our production units, SUEK is able to maintain a leading position within its sector.
Washing and processing
Washing plants and processing facilities adjacent to our mines and open pits improve the quality of our coal. Washing reduces ash, increases heat content and ultimately improves our coal’s market value. The coal is also crushed and screened so that it can precisely meet customers’ size specifications without affecting quality.
Logistics
The favourable location of our assets, with good access to key transport infrastructure, enables SUEK to reliably and cost-efficiently supply the major markets of Russia, Europe and Asia-Pacific.
Sales
SUEK’s extensive sales network ensures reliable coal supplies to customers in 38 countries. Our established offices in all key markets help mitigate business risks and allow us to sell products in local currency. More than 80% of our international sales are direct to end users.