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Donetsk National Technical University Gorozhankin Boris

Theme of master's work: "Modelling of anthracite trading company business"

Faculty: Computer science faculty

Speciality: Economic cybernetics

Gorozhankin Boris

Leader of work: Karabchevsky Vitaly Vladislavovich

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INTRODUCTION

Actuality of the problem. Ukraine owns big stocks of fossil fuel – bituminous coal. Fossil coals are very valuable energetic raw material, which is used in all countries of the world in many industrial branches. Contemporary economics of any country’s industry is impossible without the use of bituminous coals. The most attention in this work will be attended to one type of coals – anthracite. Anthracites can be used on the metallurgical enterprises for the decrease of the costs of production of cast iron and steel, as a domestic fuel for heating of houses and power stations, and also irreplaceable in chemical production of caustic soda. Main advantage of anthracites – cheapness.

Animation, 7 frames.
Animation 1 - Anthracite coal

MAIN CLAUSE

Perspective markets for selling anthracite coals.

Possibilities of market export of anthracites

Export of Ukrainian anthracites to the world markets can be one of the main directions of grows of coal industry of Ukraine. We can highlight the following strategic directions in this view: High quality of Ukrainian anthracites allows to compete with the other suppliers of the same product from Asia, Africa and Australia.

The most perspective direction is the shipment of anthracites to the metallurgical enterprises of Europe, North and South America, Africa, as a substitute of metallurgical coke.

European market

European market of bituminous coal is one of the priority markets for selling of anthracites because of its close destination. But one of the substantial constraints for the use of the bituminous coal is ecological norms, settled for all the countries of European Union. Nearness to the customers decreases the costs for transportation, what allows to form more loyal prices for the users of coal. It is also possible to contact big trader companies of Italy, Spain and other countries of Western Europe.

Latin America

Main importers of anthracites in Latin America are: Brazil, Mexico, Venezuela, Argentina. Main users of the anthracite coals are metallurgical, chemical (Solovey) and cement enterprises.

North America

There is a world leader of coal extraction in the North America – it is USA. At the same time USA is the world leader of coal consumption. But the target country is Canada where two big metallurgical enterprises are located: DOFASCO č ISPAT Sidbec.

Africa

There are two target metallurgical enterprises in Africa: ISPAT ANNABA and LNM.

General information

Concluding the above information, it is possible to say that mentioned markets are very interesting for the exports of Ukrainian anthracites and can be a strategic direction of the activity. General information as to the possibilities of exports in the nearest future are illustrated in the table. Particularity of work

There is a task of modeling of the activities of mine extracting anthracites and selling coal to the end-users in the present work. The following steps will be made: 1) Search for the end-users of coal and their volume of demand.
2) Development of the model of calculation of the most economic effectiveness of work with different consumers.
3) Optimization of work of enterprise in line with the received model data.

There are a lot of works in Ukraine which examine different aspects of functioning of coal mines in Ukraine and NIS countries. The task of present work is to examine the work of mine not only on the internal market but also on the external market where the demand for anthracite is growing every year. This direction is perspective for the modernization of mines. The particularity of work is that the whole way from the extraction of coal and to the export to the world market will be studied, but not the separate parts of this way like extraction, transportation and export. The end task will be the development of the operative model, which will include all the above steps and consider risks, immanent to the separate steps and enterprise as a whole.

AFTERWORD

As we see, anthracites are necessary for many enterprises all over the world. Enterprises are located on different continents: America, Europe, Africa. Anthracites as a domestic fuel are used in Germany, Spain, Italy, Great Britain. Latin America uses anthracites primarily for metallurgical use. In the chemical industry the world leader in anthracites consumption is European Solvey Group. One of the attractive uses of anthracite is cement production.

On the example of the above enterprises it is seen that anthracite in big volumes is necessary for many countries. And now there is a good chance to occupy this niche.


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