23 Aug 2014

Solid Energy unlikely to supply Ukraine

12:52 pm on 23 August 2014

Russia has cut off Ukraine's gas supply, forcing it to look elsewhere for suppliers.

With no gas from Russia, and winter coming, the Kiev Government estimates it can produce enough coal to keep its thermal power plants operating for just 50 more days.

It is now considering importing thermal coal, and news reports show New Zealand, Australia and the United States are being considered as sources.

But Solid Energy said New Zealand does not export thermal coal, a market which is even more depressed than the steel coal market.

A spokesperson said Ukraine is likely to import it from a closer source because the cost of shipping such a long distance would outweigh the economic benefits.