Russia’s Evraz can raise coal output 8%, sales in Ukraine 24% ‘16

MOSCOW, Oct 18 (PRIME) -- U.K.-based mining giant Evraz, which operates mainly in Russia, plans to raise coal output by 8% to 22.1 million tonnes and raise sales in Ukraine by 24% to 2.1 million tonnes in 2016, as follows from a presentation demonstrated on Tuesday.

“Evraz significantly increased supplies to the Ukrainian market over the last three years, reaching a 16% market share in 2016. By using a proactive sales approach over the next several years (3–5 years), Evraz plans to reach a sales volume of 3 million tonnes annually and to receive 20% of the market,” the company said in the presentation.

It also said that the Ukrainian coking coal market demonstrates a high return on investment. An average EBITDA (earnings before interest, taxes, depreciation and amortization) margin

stood U.S. $27 per tonne in 2016.

Evraz also plans to produce 14.2 million tonnes of coal concentrate in 2016, raising the output from 13.601 million tonnes in 2015.

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