You're reading: Energy Ministry will propose setting up vertically integrated company based on state mines

Ukraine's Ministry of Energy and Coal Industry plans to propose that the government, within the framework of reforming the coal industry, should create a vertically integrated company based on state mines, Energy Minister Volodymyr Demchyshyn has said.

“The program has been developed this week,” he said.

According to the minister, of the 35 state mines which remain under the control of the Ukrainian authorities, the vertically integrated company might include 22 state mines which the ministry assesses as being promising. The ministry will propose to mothball unpromising mines.

Demchyshyn said that the concept of reforming the coal industry is ready and would be presented to the government this week.

The minister believes that if investment in state mines is increased coal production could become self-sufficient.