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RUSSIAN COAL higher than in 2010 (9,000 mt and 1,880 mt, respectively). Over the entire period of the program realization it will put into operation 505 million mt of new and upgraded facilities for the extraction of coal—375 million mt of unviable and unprofitable businesses will be retired, reducing the level of depreciation of the main assets of the industry from current 70%-75% to 20%. The Russian coal demand for electric power is predicted to grow from 68 million to 90 million mt/y with an increase in the share of exports in the total structure of the supply of coal from 38.5% to 43%44%. Also significant is a predicted increase in the capacity of Russian coal terminal ports, from 69 million to 190 million mt. It also assumes the implementation of this program will ensure the growth of the federal budget income from organizations of the coal industry to RUB 1.7 trillion ($570 billion). Implementation of the program will reduce transportation costs and improve the efficiency of coal supplies. The average distance of transportation of coal production will decrease by 1.2 times, including in the domestic market—by 1.4 times. To reduce the impact of transportation it will also be developed in the local use of mined coal in the coal basins. In general, in accordance with the program, it will create new centers of coal production, mostly in the eastern part of the country. Thus, the share of Eastern Siberia in the total structure of coal production will increase from 25.8% to 32% while the share of the Far East will rise from 9.7% to 15.2%. High-priority Investment Projects At the same time, the government determined the number of investment projects for large and medium mining companies that will have a high priority level for development in the coming years. In particular, in the Kuzbass, which holds more than 50% of the production capacity of the industry, it will continue the development of the Yerunakovsky coal area, where a number of the new enterprises will be built in Mencherepskom, Zhernovskaya, UropskoKarakansky, Novokazanskom, Solonovskom and other coal deposits with favorable geological conditions for development. By 2030, 11 new underground mines and four surface mines will be developed in the Kuznetsk Basin, with a total capacity of 40.5 million mt/y. The companies Sibuglemet (Siberian Business Union Holding), Kuzbassrazrezugol, Cox and UDC Mencherepsky have already announced plans to boost production capacities during that period. Also, private companies plan to create a series of power technology systems in the Kuzbass, which will allow the producers to go to the integrated development of resources of coal deposits, and in particular to the mining and using of methane. By 2015, the Belovskaya mine plans to establish a cluster of energy technology that will consist of a surface mine with the capacity of 6 million mt/y, an underground mine with the capacity of 3 million mt/y, a prep plant that will process 6 million mt/y, and a complex that will produce 160,000 mt/y of semi-coke. The complex includes a 40-MW power station 98 E&MJ; • APRIL 2013 www.e-mj.com