RETENTION
of low-cost position

Increase efficiency along the value chain

The Coal segment continues to implement a long-term efficiency improvement programme. In 2016, productivity growth generated an additional US$36 million. Payroll optimisations totalled US$23 million. Improving auxiliary material usage, industrial services and G&A saved another US$21 million. Asset optimisation lowered expenses by US$12 million.

Additionally, energy efficiency measures have reduced costs by US$2 million. For more information , see Energy-saving measures page.

The main projects for 2016

Optimisation of tunnel works and mine preparation
Improving degassing efficiency

Actions in 2016:

  • Installing high-efficiency equipment for drilling degassing and relief holes.
  • Mines equipped: Yerunakovskaya, Osinnikovskaya and Raspadskaya Koksovaya.

2017 plan:

  • Begin degassing seams using long directional holes at Yerunakovskaya-VIII mine.
  • Study best practise in Russia for degassing coal seams using directional holes from the surface.
  • Continue experimenting with degassing seams using plasma impulse excitation.
Increase tunnelling rates

Actions in 2016:

Tunnelling rates grew c. 30% year-on-year in 2016 after adding high-efficiency tunnelling equipment:

  • Four bolter miners were added. In November, a bolter miner at Yerunakovskaya-8 reached a stable rate of 450 metres per month.
  • New tunnelling equipment is being put into operation at the Raspadskaya mine that has reached 300 metres per month.
  • Fletcher roof bolters were put into operation at the Raspadskaya Koksovaya mine in October.

2017 plan:

  • Tunnelling growth target for 2017 has been set at 25% year-on-year.
  • Use new mining technology.
  • Continue adding high-efficiency tunnelling equipment.
Improve face productivity
Increase operating time on clearing faces

Actions in 2016:

  • Average daily operating time has increased by reducing accident and operational delays, as well as repair shift work.
  • Average daily production is 8-20% above target year-on-year.
  • Increase in load at Raspadskaya (up 43% year-on-year) and Uskovskaya (up 15% year-on-year) mines.

2017 plan:

  • Introduce production time accounting and analysis systems to improve productivity at tunnelling faces by 25% year-on-year in 2017.
Increase concentrate output at coal washing plants
Upgrade plant production chain

Actions in 2016:

  • Installed new equipment for additional production processes (hydrocyclones, high-frequency screening machines, chamber filter presses).

2017 plan:

  • Launch flotation at the coal-preparation plant.
Optimise plant production process

Actions in 2016:

  • Production processes have been automated, optimal equipment operations have been chosen.

2017 plan:

  • Continue optimising equipment operations.