OREANDA-NEWS  On 24 February was announced, that DTEK, the leader of the fuel and energy sector of Ukraine, keeps cooperating with the Czech heavy-engineering company Ostroj. The energy holding purchased two Ostroj mining machines -70/125 for Pavlogradskaya and Ternovskaya Mines, which are under Pavlogradugol umbrella. The contract amount is about EUR 20 million.

Similar equipment is already used at Pavlogradugol (Dneprovskaya and Stepnaya Mines). In January 2009 DTEK concluded the contract for purchasing mining machine Ostroj-07/16 for Komsomolets Donbassa for the amount exceeding EUR 15 million. New machines will be launched at Pavlogradugol in October 2009.

Ostroj mining machines allow the mine to efficiently extract coal of 1.1 m seams. The non-failure operating time of the equipment is about 8-10 years, which is a much longer period compared to the equipment used by the Ukrainian companies. The key effect from implementation of the present project is achieved as the result of increase in the long-wall mining capacity up to 2 thousand tons of coal per day, reduction in the ash content of coal and increase in the life span of the equipment.

DTEK uses the project financing approach to implement the investment program. To implement its modernization programs the Company raises funds from the leading national and international banks and, thus, does not divert own resources. Ceska Sporitelna, a.s., acted as DTEK's financial partner in the project; it provided a five-year loan at the rate Euribor +1.7%.