DonNTU   Masters' portal

Averin Aleksandr

Institute of Mining and Geology

Department of Production Management

Specialty Management of mining enterprises

Development of modern tools for implementing coal products on the example of mine SE Mine North SD Makeevugol

Scientific adviser: Ph. D., Professor Shapoval Sergiy Nikitovich

Resume Abstract

Abstract

Content

• Introduction
• 1 Topicality
• 2 Research objectives
• 3 Review of the methods of realization of coal in Ukraine
• 4 Review of the methods of coal in the world realiatsii
• 5 Development tools coal sales
• Conclusion
• List of sources

Introduction

Due to political factors, the Donbas coal industry is in a difficult position. The civil war in Ukraine caused great damage, this major economic and energy sector of the country. Before the Donbas is a difficult choice, close the mine or to restore them so that they are able to maintain the economic environment of the Republic. If the state decides to restore the mine, while the coal industry may have problems such as the implementation of coal production.

1 Topicality

In the ever-changing conditions of modern market economy to the success of the coal industry are needed, and modern approaches to the implementation of coal production. And in the current situation in the Donbass, these approaches can help in establishing and stabilizing the economy.

2 Research objectives

The aim of the study is to analyze the implementation of the existing methods of coal production at the mine, and a proposal for the introduction of the test methods by the example of mine "Severnaya" GP Makeevugol.

3 Review of the methods of realization of coal in Ukraine

At the time when the Donbass is part of Ukraine, the implementation of coal production occurred in three schemes: for "direct" agreements between coal producers and consumers, through the state enterprise "Coal of Ukraine" as the operator of the wholesale market of coal production, and through the Commodity Exchange Ukrainian Energy Exchange (TB UEB).

The model of centralized marketing of coal products through a single state-owned operator of the wholesale market has played an important role in stabilizing the initial stages of market transformation of the Ukrainian economy. Acting as the focal point of the market, the operator carried out the distribution of coal production at fixed prices estimated between consumers, thus ensuring their sustainable production position, the state needs to ensure the satisfaction of coal resources and the timely reimbursement of the cost of the product manufacturer [1].

As for TB UEB, it was determined the winner of the competition for the selection of commodity exchanges (electronic stock exchanges) to organize and conduct electronic exchange trading in the sale of coal products in accordance with paragraph 2.1. Competitive requirements for the selection of exchanges (electronic stock exchanges) to organize and conduct electronic exchange trading in the sale of coal products, approved by order of Ministry of Economic Development of June 19, 2012 № 723, registered with the Ministry of Justice of Ukraine 27.06.2012 № 1073/21385 was created to implement the trade organization in Ukraine in the energy markets and energy [4].

Opportunities Exchange:

1. Institute brokerage. Exchange trading service allows accredited brokers on the stock exchange, to carry out all the necessary actions for the transaction. If you would not use yourself brokerage companies on the stock exchange as an accredited brokerage firms.
2. Participation in the stock exchange from remote terminals. Exchange provides an opportunity to participate in exchange trading via the Internet for remote access mode.
3. Free software and training. In addition to providing software to teach Exchange trading system to work with both the workplace on-site exchange and remote access.
4. Prompt provision of information. Exchange in a timely manner and in an accessible form places all the information necessary to carry out exchange activities [5].

Disadvantages of the direct implementation of agreements and sales through the Coal of Ukraine:

1. Violation of the balance of economic interests of producers and consumers due to lack of market opportunities of establishing market prices, the availability of intermediaries.
2. Cross-subsidization of the effective action of unprofitable coal mines, which reduces the motivation of coal products manufacturers in competition.
3. Creating barriers to effective trade between small coal producers and consumers, in particular metallurgical plants, household consumers, producers of cement, soda and sugar mills, mining and processing plant, the rail industry.
4. Reducing the investment attractiveness of the coal industry because of the lack of transparency of pricing and regulation of sales [3].

Benefits of TB UEB:

1. Establishing a fair price based on the actual supply and demand balance for coal products based on market conditions.
2. Formation of the competitive environment for buyers and sellers (participation in exchange trading on equal terms, both buyers and sellers, gives the opportunity to buy or sell coal products at the best price on the basis of free competition).
3. Simple search for potential buyers and to enter into contracts of sale.
4. Create opportunities to carry out wholesale trade in coal production and a gradual transition to other forms of exchange futures contracts (futures, forwards, etc.) and derivative financial instruments (hedging).
5. The organization of exchange of goods quality examination and evaluation of collateral for clearing operations [2].

4 Review of the methods of coal in the world realiatsii

The development of modern forms of electronic exchange trade has led to an increase in the number of direct customers on exchange trading floors and short-term contracts. A growing number of exchanges for trading in futures contracts for coal, which provides more transparency than OTC markets, including:

• NYMEX (New York Mercantile Exchange) - futures trading contracts for coal in 2001;
• ICE (Intercontinental Exchange) - Futures trading for coal products;
• (European Еnergy Exchange) - coal futures and OTC clearing;
• ASX - (Аustralian Stock Exchange) - monthly, quarterly, annual coal futures.

Тak same according to the decision of the government of the Russian Federation on the development of exchange trading in coal, coking coal spot trades conducted on the basis of the St. Petersburg International Mercantile Exchange.

The Russian government approved the decree on July 20, 2012 № 1309-p., Which includes coal in the list of commodities for which OTC transactions, including World experience exchange trading term coal supply contracts are subject to mandatory registration of commodity exchange.

The big coal mining companies (Anglo American, BHP Billiton, Glencore и Rio Tinto), companies - consumers (ENEL, EON, J-Power) and others have established a system Global Сoal, an electronic platform for trading physical coal and financial instruments between members of that system.

5 Development tools coal sales

Having analyzed the way at the moment there is a realization of coal, we find that the model of stock trading is the most safe and effective, why Donbas, being in its infancy, not ispozovat stock-market model implementation of coal products ?! It may be too early to trade futures contracts and use coal as a currency, but the move to electronic online sale of coal and coal products sales provide a modern system, perhaps you can.

In my opinion, the first phase of the transition to the implementation of the system elektronnuju coal products, it is necessary to give everyone the opportunity to trade coal coal enterprises online with its own website. Here is an example:

For example, I took the site coalex.ru and little work in photoshop, I turned out such a model for mine Severnaya. This example shows that with help of the website, you can easily make an order at the price that we predastavlyaet production. What would we need to make an order for us to find the right brand of coal, ash, koloriynost size, just choose to dastavki rosstoyaniya depending of type, the system will calculate the price and shipping cost of coal. Also placed on the site catalog, which shows the value of different grades of coal [7].

Of course, such a tool can be used coal production at its own discretion, especially if the mine will have a private owner, if the mine is prinadlizhat state, then the question of the use of this instrument or not will be decided by the state itself.

And what if the State possess an instrument Electonics sale of coal products and coal will sell all state enterprises such as the website of the Ministry of Coal and Energy Donetsk People's Republic, as well as to place the services of other private enterprises for a set percentage of the sale of coal?

For example, we see the site Ministirstva Donetsk Coal and Energy of the People's Republic , where I with the help of photoshop, added to exchange in which are some coal enterprises included in the territory of the DNI. As in the first example, this site one can select the desired type of coal, any entity that will use the services of the site at the right price. As I said above, the same services will be able to enjoy and private coal companies, which will need the services of the exchange for a certain percentage of the sale [6].

The idea is that the Ministry does not require advertising their services, it is a public tool, which is known to every citizen of this state. However, some coal enterprises need in spreading information about their products, and this can help a giant like the Ministry of Coal and Energy. Pros will consist in the fact that using this tool implementation, we can achieve a fair price in relation to the quality of coal products, coal companies will have the motivation to improve the quality of the coal produced, what the consumer is buying its products.

Conclusion

Based on the above facts, we can conclude that the use of models Mercantile Exchange as the main tool for implementation of coal products, can be achieved: the establishment of a fair price for coal products, as well as the creation of a liquid, secure and efficient mechanism for market energy trade in the domestic and foreign market Donetsk People's Republic.

List of sources

1. Рябич О. Н. Реформирование угольной отрасли и создание свободного биржевого рынка угля. / Рябич О. Н. // Вести Донецкого горного института № 132. – Донецк: ДВУЗ ДонНТУ, 2013 – C. 249–253.
2. Программа экономических реформ Президента на 2012–2014 годы «Богатое общество, конкурентоспособная экономика, эффективное государство». – [Электронный ресурс]. Режим доступа: partyofregions.ua
3. Концепция перехода на биржевую форму продажи угля. Одобренно распоряжение КМУ от 26.10.2011 № 1070-р. – [Электронный ресурс]. Режим доступа: zakon4.rada.gov.ua
4. Приказ № 723 от 19. 06.2012 «Об утверждении Конкурсных требований по отбору товарных бирж (электронных биржевых площадок) для организации и проведения электронных биржевых торгов по купле-продаже угольной продукции». – [Электронный ресурс]. Режим доступа: archive-ua.com/ua/l/ligazakon.ua
5. Украинская Энергетическая Биржа. – [Электронный ресурс]. Режим доступа: ueex/com.ua
6. Министерство угля и энергетики Донецкой Народной Республики. – [Электронный ресурс]. Режим доступа: mintek-dnr.ru
7. Биржа угля «Coalex» – единая торговая площадка для участников угольной отрасли. – [Электронный ресурс]. Режим доступа: coalex.ru