Coal industry development strategy in domestic and foreign markets

Abstract

Relevance. In the current context, the cost of coal products is growing. Labor productivity in coal mines and open-pit mines is significantly lower than the corresponding indicator in North America and Australia, a significant proportion of unprofitable enterprises, despite the fact that a third of the world’s coal resources and a fifth of the proven reserves are concentrated in the Russian Federation. In these circumstances, the substantiation of the strategic development of the coal industry on the basis of a SWOT analysis is of great importance. Purpose of the study is to substantiate the strategic vision for the development of the coal industry, priorities for the functioning of coal mining enterprises. Research methods are scientific generalization, method of system analysis and analogies. Results. In the course of the study, the possibilities of functioning of coal mining enterprises, threats to the coal industry, strengths and weaknesses of their activities were identified. The ability to function is determined by the presence of huge coal reserves in Russia, the leadership in its production and export, and a significant share of coking coal grades. The identified threats include: a significant decrease in prices on the world market and coal consumption in the domestic market, an increase in the average transportation distance and the risks of introducing environmental restrictions. The weaknesses in the activities of coal mining enterprises, requiring appropriate measures to be taken to liquidate them, come down to the following: increased operating costs, low labor productivity, a significant number of small mines and open-pit mines that hinder the effective development of the industry as a whole. At the same time, the strategy for further development should focus on the strengths of the coal mining enterprises. These include lower capital investments based on conventional fuel, significantly lower than in the oil and gas industry, therefore, during the period of ensuring sustainable development of the economy as a whole, the development of the coal industry will require lower costs, which creates conditions for the development of other related industries, the possibility of introducing an economic mechanism of inter-fuel competition, as well as the effective functioning of the market structure within the “free” oligopoly. Increasing the competitiveness of coal mining enterprises requires the use of accelerated depreciation methods at export-oriented enterprises, the introduction of problem-solving technology at large coal mining enterprises, the establishment of a rational ratio of the used imported and Russian equipment, and the containment of the growth in the cost of railway transport services. The focus on the implementation of the concept of creating a digital industrial enterprise in the industry plays a special role. A number of measures should be taken to improve financial stability. Conclusions. The identified opportunities and threats, as well as the strengths and weaknesses of the activities of coal mining enterprises, serve as the basis for substantiating the “Strategy for the development of the coal industry”, determine promising directions for the future of coal mining enterprises.