Abstract on the topic of the graduation thesis
Table of Contents
Introduction
The energy sector plays a key role in the strategic development of many regions, and the Donetsk People's Republic is no exception. One of the essential elements of the energy system of this region is the coal mining industry. Coal, as the main energy source, remains an integral part of ensuring energy security and supporting economic growth. The stable operation of coal mining industry directly affects the state of adjacent sectors such as metallurgy and power engineering.
However, challenges such as low technical level, equipment wear and tear, and complex geological conditions, accompanied by high coal mining costs, raise questions about the economic efficiency of coal mining enterprises. The need for constant investment becomes an important aspect of maintaining and improving production efficiency in this industry.
1. Relevance of the Topic
The relevance of the topic is consistently emphasized in the modern context, where energy and the economy play a key role in the sustainable development of regions. In the conditions of constant changes in the energy sector, including the transition to cleaner and more efficient technologies, optimizing the structural proportions of coal mining enterprises becomes crucial.
This theme gains significance in light of the strive to reduce environmental impact and lower greenhouse gas emissions. Optimizing structural proportions may involve the implementation of efficient technologies, improvement of production processes, and diversification of the energy portfolio.
Moreover, in the conditions of competitive economies and global market trends, the effective structure of coal mining enterprises becomes a key factor in maintaining competitiveness and ensuring long-term stability. Optimization of structural proportions is also aimed at improving the economic efficiency of coal mining enterprises, which is essential in the volatile market conditions and the need for attracting investments.
Thus, this topic represents an important aspect of strategic management in the coal mining industry, taking into account contemporary requirements for economic, environmental, and social sustainability.
2. Problem Statement, Aim, and Research Objectives
The aim is to analyze current structural proportions and investigate methods for their optimization in coal mining enterprises operating within the fuel and energy complex.
In the conditions of the modern economic environment, especially within the fuel and energy complex undergoing an integration process in the face of new realities, the optimization of structural proportions and coal mining dynamics becomes crucial. Existing challenges, associated with market instability, deep industry transformation, and shifting priorities, require in-depth analysis and evaluation of existing structural proportions in the extractive industry sector. The coal industry determines the functioning and development of the fuel and energy complex and most basic industrial sectors. It is also the key to the economic independence of the state. By fulfilling its mission, coal mining enterprises provide consumers with coal raw materials, upon which the stability of thermal power plants, metallurgical and chemical production, as well as communal services, depends.
The dynamics of changes in the political and economic environment of the state dictate the need for a revision and further development concerning the essence, structure, evaluation, and toolkit for managing the economic potential of coal mining enterprises, which are fundamental for most sectors of the region and formative for many cities and districts of the Donetsk People's Republic. It is necessary to analyze the dynamics of coal mining in the context of changes in modern geological conditions, technical limitations, and economic factors influencing production processes. The answer to these questions involves a comprehensive analysis and the development of effective strategies aimed at optimizing production and increasing the overall efficiency of coal mining enterprises in the fuel and energy complex.
Research Object: Economic activities of a coal mining enterprise under the conditions of the State Enterprise "DUEK" of the Donetsk People's Republic.
Research Subject: Analysis and optimization of the structural proportions of a coal mining enterprise under the conditions of the State Enterprise "DUEK".
3. Methodology and Research Methods
The selection of specific methodologies and methods depends on the specific goals of the research, available resources, and the characteristics of the coal mining industry. In our case, the following methodological approaches and research methods can be applied:
Figure 1 – Theoretical Methods of Scientific Research
Methodological Approaches:
- Systems Analysis: Examining the coal mining enterprise system as a whole, including its structural components and interaction with the surrounding environment.
- Economic-Mathematical Modeling: Developing mathematical models to assess the impact of different structural proportions on the economic efficiency of the enterprise.
- Environmental Analysis: Evaluating the impact of structural changes on environmental indicators, such as emissions, energy consumption, and climate resilience.
- Strategic Management: Applying methods of strategic analysis to determine optimal development strategies and structural decisions.[1]
Research Methods:
- Surveys and Interviews: Conducting surveys and interviews with managers and specialists of coal mining enterprises to identify current problems and potential improvements.
- Data Analysis: Processing statistical data on production indicators and economic results of coal mining enterprises.
- Case Study: Studying the experience of successful optimization of structural proportions using examples from other companies or regions.
- Expert Assessments: Obtaining opinions and assessments from experts in the field of coal mining, energy, ecology, and strategic management.
- Scenario Modeling: Developing development scenarios considering various structural parameters to assess their impact on key indicators.
- SWOT Analysis: Assessing the strengths and weaknesses, opportunities, and threats associated with the current structure of the enterprise.[2]
4. Theoretical Foundations for Improving the Economic Efficiency of Coal Mining Enterprises
In the fuel and energy complex, coal mining enterprises play a key role in ensuring energy security and meeting fuel needs. In the context of modern market requirements, changing economic conditions, and environmental aspects, optimizing the structural proportions in such enterprises becomes an important task. To address this, let's examine key capacity indicators for the following mines (Table 1):[3]
Analysis of Production Capacity Utilization in Coal Mining Enterprises
| Indicators
| Zasyadko Mine
| A.A. Skochinsky Mine
|
| Design Capacity, thousand tons/year
| 1200
| 1800
|
| Production Capacity, thousand tons/year
| 600
| 700
|
| Average Annual Production for the Last 3 Years, thousand tons/year
| 151.7
| 501.6
|
| Average Percentage of Production Capacity Utilization, %
| 25.3
| 71.7
|
| Average Percentage of Design Capacity Utilization, %
| 12.6
| 27.9
|
Analysis of data on production capacity utilization allows identifying differences in the efficiency of various mines and their compliance with design capacities. For example, the A.A. Skochinsky Mine demonstrates more efficient use of its production capacity, leading to higher coal production compared to other mines. Zasyadko Mine also has the potential to increase the utilization of its capacities. These data can serve as a basis for additional analysis and decision-making regarding the optimization of production processes and increasing the efficiency of coal mining. [4]
Let's consider the volumes of coal production by the State Enterprise "DUET" and their dynamics for the years 2016-2019 (Table 2).
Analysis of the Dynamics of Coal Production Volumes by State Enterprise "DUET"
| Enterprises
| 2016
| 2017
| 2018
| 2019
|
| Zasyadko Mine, thousand tons
| 103.03
| 186.77
| 165.16
| 124.556
|
| A.A. Skochinsky Mine, thousand tons
| 406.8
| 563.0
| 534.9
| 359.9
|
| DUET
| 590.200
| 784.820
| 827.010
| 530.000
|
After analyzing the presented data in the table, the following observations were made. The total coal production of the state enterprise "DUET" increased, starting from the year 2016: a 133.0% increase in 2017 and a 105.4% increase in 2018. However, in 2019, there was a decrease in production by 64.1%:
Zasyadko Mine: coal production increased by 181.3% in 2017 compared to 2016, then decreased by 11.6% in 2018 and further by 24.6% in 2019.
A.A. Skochinsky Mine: coal production grew by 138.4% in 2017 compared to 2016, then decreased by 5.0% in 2018 and further by 32.6% in 2019.[5]
Based on this data, it can be concluded that coal mining enterprises exhibit different trends in coal production volume. Some show stable growth, while others operate unevenly, resulting in a decline in production. These trends are influenced by various factors such as changes in geological conditions, technical issues, or changes in the economic environment.
In modern economic theory, economic growth is understood not as short-term fluctuations in actual production volume compared to cost but as long-term changes in actual indicators of production volume associated with the development of productive forces over an extended period. The system for assessing the economic development of an enterprise is based on calculating indicators of two groups.[6]
The indicators of the first group characterize the level of achieving the goal of developing an industrial enterprise: improving business processes (investment attractiveness of mines, fuel power plants); meeting the needs and expectations of consumers (enterprises of the processing industry); developing the potential opportunities of fuel and energy complex enterprises; satisfying the needs and interests of consumers - individuals.
Indicators of the second group are intended to assess the potential of the industrial enterprise: production volume indicators; financial indicators; indicators of fixed assets and their use; indicators of the use of material resources; indicators of labor resources, social protection, and personnel utilization; indicators of operational efficiency; indicators of intangible assets.
Economic development planning includes: developing goals and research tasks; identifying internal and external factors affecting the planning effectiveness; developing priority activities and ways to implement plans to achieve goals. The process of implementing the function of economic development planning by the management of fuel and energy complex enterprises is influenced by factors in both the internal and external environment. [7]
Figure 1.1 Formation of the economic efficiency indicators system for production [author's development]
Conclusions
In conclusion, it can be noted that optimizing the structural proportions at coal mining enterprises under the conditions of the State Enterprise "DUET" is an important task that requires a comprehensive analysis. Studying capacity utilization, coal mining dynamics, and geological conditions allows identifying factors influencing the efficiency of enterprises. To optimize structural proportions, it is necessary to consider both economic and technical aspects.
Effective economic development planning can serve as the basis for developing a new strategy and a new culture in public production, mobilizing and concentrating all the energy and resources of society to achieve the set goal. Without new approaches to forecasting potential opportunities, economic entities face problems of inefficient use of economic resources and existing opportunities.
While writing this abstract, the master's thesis is not yet completed. Final completion: June 2024. The full text of the work and materials on the topic can be obtained from the author or supervisor after the specified date.
List of Sources
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- Polyakova E.I., Gofert A.R. Aspects of sustainable development of the production potential of coal mining enterprises // collection: Economics and Marketing in the 21st Century: Issues, Experience, Prospects. Collection of materials of the XVIII International Scientific and Practical Conference. Donetsk, 2022. Pp. 48-52.
- Polyakova E.I. Analysis of the current state and problems of budget financing of the fuel and energy complex of the region // Industrial Economics. 2021. No. 5.
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- Khuzheva A.Sh., Kirzhinova K.N. Study of the problems of functioning of regional energy systems in conditions of limited own energy resources // Bulletin of Adyghe State University. Series 5: Economics. 2011. No. 4.
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