Inter RAO mulls buying coal mines in Siberia to cut costs

MOSCOW, May 30 (PRIME) -- Russian power holding Inter RAO is considering buying coal mines in Siberia as part of its fight against growth of coal prices, Alexandra Panina, director of the company’s center for competence on trade operations on the wholesale power market, said during a conference call on Tuesday.

“We are seriously considering such possibility as a purchase of own coal mines. We already have such experience at the Gusinoozyorskaya GRES… At such plants as, for instance, the Kharanorskaya GRES, we are considering buying coal mines in Siberia in order to optimize the final cost, in other words we are thoroughly working on reduction of coal prices,” she said.

Inter RAO is also considering switching to long-term contracts on coal supplies instead of annual deals to make the price formation process more transparent.

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