OREANDA-NEWS. September 09, 2013. During the first half of 2013 the country's coal mines produced more than 2 million 67 thousand tons of coal, which exceeded the expected forecast figures for the industry. High growth rates have been made possible by upgrading the production facilities of the sphere.

At a meeting of the Cabinet of Ministers, dedicated to the socio-economic development in 2012 and the most important priorities of economic program for 2013, President Islam Karimov stressed that the priorities in the implementation of the program in the short term should be to accelerate and expand the scale of modernization, technical and technological modernization of the economy and its leading industries, diversify production.

Coal industry occupies one of the key positions in the energy sector of the country. Over the past years, the industry has been characterized by steady growth rate of coal production and sales, as well as the positive dynamics of the main economic and financial indicators.

In Uzbekistan, the main consumer of solid fuels is the electricity sector, which accounts for over 85 percent of total coal consumption. There is a demand from the industrial, social and community enterprises, population. Uzbekkumir, a subsidiare of Uzbekenergo, is among the largest coal mining companies in the country.

According to the data provided by Uzbekkumir, for six months in 2013 the coal industry has exceeded their forecast figures for the extraction of coal by 1.8 percent. During the reported period, commodity output for 1.7 billion soums has been realised. New jobs, including home-based work, have been created.

In order to further ensure sustainable and balanced development of the coal industry through the implementation of investment projects, the expansion of the resource base, the safety of mining operations, training for the enterprises of the sector, the Cabinet of Ministers issued a decree "On approval of the program of modernization, technical and technological re-equipment of the coal industry and its balanced development for the period 2013-2018 years" on June 6, 2013 .

The program includes nine projects with a total estimated cost of 555.2 million U.S. dollars. They will be financed by the Fund for technical re-equipment and modernization of the coal industry, the own funds of Uzbekkumir, as well as loans from commercial banks. Implementation of investment projects will significantly increase the resources, ensure the safety of mining operations, and prepare highly qualified specialists.

Most of the money, which is 438 million US dollars, will be sent to the modernization of the existing production capacity of coal mines. For example, more than 334 million USD will be allocated to upgrade the production of Shargunkumir and purchase of equipment and special equipment. More than \\$ 100 million is allocated for the rehabilitation of production facilities of Uzbekkumir JSC and reconstruction of transport infrastructure.

Before the end of 2013 three investment projects will be fully implemented. Among them are technological modernization of the corporate network and data communications system and the construction and equipping territorial distribution centers in the Ferghana Valley, Khorezm and Bukhara regions and the Republic of Karakalpakstan.

This year the work will begin on upgrading and replacement of obsolete equipment at Shargunkumir JSC, support of the production capacities of Uzbekkumir and renovating its railway system will continue, development of an automated information system for the central supervisory control and production management will start. In the beginning of 2014 construction of a new coal mine Apartak will commence, which will be completed in 2016.

In short, the implementation of promising investment projects will raise the coal industry of Uzbekistan to the next level, significantly increase its production capacity to ensure stable and uninterrupted supply of the economy and population with solid fuel.