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ArticleName Production activity analysis methodology for open pit coal mines (in terms of Shestaki open pit mine)
DOI 10.17580/em.2017.01.04
ArticleAuthor Zhaglovskaya A. V., Savon D. Yu., Safronov А. Е., Sidorova E. Yu.

National University of Science and Technology–MISIS, Moscow, Russia:

Zhaglovskaya A. V., Associate Professor, Chair of Industrial Management, Candidate of Economic Sciences
Savon D. Yu., Professor, Chair of Industrial Management, Doctor of Economic Sciences,
Sidorova E. Yu., Professor, Acting Head of Chair of Economy, Doctor of Economic Sciences


Don State Technical University, Rostov-on-Don, Russia:

Safronov А. Е., Professor, Chair of Marketing and Engineering Economic, Doctor of Economic Sciences


Russian coal industry possesses every opportunity to become the modern and highly competitive sector of economy. The competitive advantages of Russian coal companies within the domestic energy economy include, among other things: huge coal reserves sufficient for 600 years at the current level of production; appreciable experience of utilization of this energy resources for sustainable power supply, especially under crunch; possibility to enter the world market; considerable potential to enhance efficiency; diversity of coal products; adaptability to fluctuating market; fusion with the priority trends in the innovative economical development; contribution to the regional energy security. Russia is one of the leading coal producers in the world. Russia holds one third of the global coal resources and one fifth of the known resererves — 193.3 bln t. Given the current level of coal mining, these reserves are enough for more than 550 years. In 2016 Russian coal companies produced 385.7 Mt of coal (increment by 3% as compared with 2015). The dominant share in the production belongs to open pit mining — 72.9%. Open pit coal mines produced 281.1 Mt of coal in 2016 (increment by 4% as against 2015). This article describes the procedure for the analysis of performance of open pit coal mines in Russia. The procedure has been trialed in terms of open pit mines with the medium annual production output (between 1 and 5 Mt). It is found that out of such mines, the most sustained rate of increase in overall production and in the economic performance is a feature of companies that produce coal of the most valuable ranks. In terms of a typical representative of such companies — Shestaki open pit coal mine, the authors have developed the performance forecast algorithm for the nearest 1–2 years. It is recommended to use the algorithm to analyze low (to 1 Mt) and high (above 5 Mt) open pit performance.

keywords Coal, coal production, open pit mine, production output, cost, sales price

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Full content Production activity analysis methodology for open pit coal mines (in terms of Shestaki open pit mine)