The publicly traded coal mining companies are: EVRAZ, Mechel, KTK, Raspadskaya (part of the EVRAZ holding) and Southern Kuzbass (Mechel Group). Also, coal is produced by SUEK, UGMK, SDS-Ugol, and Russian Coal, but their shares are not traded on the stock exchange. It is also worthy of note that the biggest Russian metallurgical companies (Severstal, MMK, NLMK) and En+ Group holding also produce coal but with rare exceptions the whole volume of mined rock is used in their own production process and is not put on the market.
EVRAZ. The company is the largest producer of coking coal in Russia. In 2017, its enterprises produced 23.3 million tons of coal. Extraction, preparation, and production of concentrates are carried out at the mines and enterprises of Yuzhkuzbassugol, Raspadskaya Coal Company, and Mezhgeyugol. More than a third of all mined coal goes to provide raw materials for the group's own metallurgical segment. The remaining portion is almost evenly split between the domestic and foreign markets.
EVRAZ specializes in the production of coking coal, which is essential in the steel industry. Among the group's Russian coal consumers are such metallurgical companies as MMK and NLMK. The company's key overseas markets are China, Europe, Japan and South Korea.
Mechel. Mechel is Russia's second largest producer of coking coal and one of the world's largest producers of raw materials for the steel industry. The group controls 25% of Russia's coking coal processing capacity. Total coal production in 2017 was 20.6 million tons.
Mechel works with both metallurgical and steam coal. According to 2017 data, the group's enterprises sold 7.9 million tons of coking coal concentrate, 6.1 million tons of steam coal and 2.7 million tons of coke.
The company is quite strongly integrated into the international coal trade, with more than 50% of its mining segment's revenue generated in Asian markets and another quarter in the Russian market. The rest is accounted for by Europe, the CIS countries and the Middle East.
Kuzbass Fuel Company. KTK is a coal company with one of the highest growth rates of operational indicators. In 2017, the company's mines produced 13.23 million tons of coal. CPC capacities are concentrated in the Kemerovo region and are represented by 4 active mines. There are plans to launch a fifth site with reserves of 67,000 tonnes.
Extraction is carried out by open-pit method, the company produces only steam coal. According to 2017 data. 8.9 million tons were sold on foreign markets, with Poland 12%, Western and Eastern European countries 18% and Japan, South Korea and Taiwan 70%.
Raspadskaya (part of EVRAZ Group). Raspadskaya's production in 2017 was 11.4 million tons. The company operates three mines, as well as one open-pit mine. At the same time, the latest mining technologies, as well as relatively shallow depth of occurrence, allow the company to mine coking coal grades using the open-pit method. Raspadskaya's metallurgical coal accounts for 100% of its production.
Raspadskaya's products are actively exported to the Asia-Pacific region and Eastern Europe. Only 34% of coal products were sold on the domestic market in 2017.
Southern Kuzbass (controlled by Mechel). Southern Kuzbass produces both coking and steam coal. Coking and steam coal concentrates, anthracites, and PCI coals are supplied in enriched and sorted form (97% of total production) to the domestic market and for export. In 2017, total production was 7.2 million tons.
The company includes three active open-pit mines (Krasnogorsky, Sibirginsky, and Olzherassky) and three mines (Sibirginskaya, Olzherasskaya-Nova, and Lenin mine). The company's subsidiaries are Tomusinsky Razrez and Vzryvprom Yuga Kuzbassa. As of 2017, the company's proven reserves amounted to 1.8 billion tons.
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