OREANDA-NEWS. April 4, 2008. The management of Pavlogradugol OJSC is extremely concerned with the insufficient provision of empty rolling stock for the company’s mines and Pavlogradskaya central enrichment plant (Pavlogradskaya CEP) on the part of Ukrzaliznytsia PE. As the press service of Pavlogradugol OJSC informed ForUm, this statement is contained in the company’s official note.

‘’Due to the shortages and extreme irregularity in the supply of railway cars in the last two days, more than 23 thousand tons of coal were shipped to the emergency stores of Pavlogradugol OJSC mines, which brought the stores up to 100% of capacity. Since the outflow of saleable product was impossible, the operation at 4 of 10 of the company’s mines was stopped: Geroyev Kosmosa mine, N.I. Stashkova mine, Zapadno-Donbasskaya mine, and Ternovskaya mine. Output of coal concentrate from Pavlogradskaya CEP was also suspended.

This resulted in more than a 30 thousand ton undersupply of coal from Pavlogradugol OJSC to thermal power plants in the Donetsk and Lugansk Regions, coke and chemical plants and other consumers. In addition, interrupted work in mine production sections can entail a significant reduction of the workers’ salaries, which may lead to social tension in the Western Donbass region, where Pavlogradugol OJSC is the main employer. A holdup at breakage faces in mines causes their deterioration and a worse quality of extracted coal.

The management of the company is concerned with the fact that this situation is accompanied by a significant decline in the amount of taxes paid by Pavlogradugol OJSC, being the largest tax payer in the Western Donbass, to the state budget of Ukraine.

The fact that such shortages in supplies of railway cars are recurrent is also alarming. For example, in November and December 2007, more than 2 thousand cars were undersupplied and in February this year, the shortage was more than 350 cars. In this respect, the management of Pavlogradugol OJSC repeatedly sent official requests to the management of Ukrzaliznytsia PE and Prydniprovska Zaliznytsia PE asking them to comply with the regularity and quantity of empty rolling stock supplies. Nevertheless, the situation hasn’t improved.

Today, the share of Pavlogradugol OJSC in the total production volume of Ukraine is more than 16%. The company’s management is aware of the importance of the company’s role in ensuring the energy security of Ukraine, that’s why, for its part, the enterprise will make all possible efforts for the normalization of its work’’, the note says.

‘We ask that the management of Ukrzaliznytsia PE should take effective measures that will allow the resolution of the present situation and prevent its adverse impact on the operation of the power sector of Ukraine’, the General Director of Pavlogradugol OJSC, Nikolay Tishchenko, said.