Russian largest coal producer Siberian Coal Energy Company (SUEK), which currently accounts for 28% of Russia's total coal output with approximately 108 Mt of coal produced in 2017, plans to invest around US$3bn to ramp up its output by 20 Mt by 2022 (+18%). The group will also seek to raise the share of its coal it is able to wash from 40% to 60%. In addition, SUEK is gearing up tor the launch of an initial public offering (IPO); the IPO was put on hold due to market conditions in 2011 but the group still plans to list its shares.
SUEK is one of the world's largest coal exporter along with Glencore and BHP Billiton. This strategy will help the company to grab a larger share of the global market and in particular in the Asia-Pacific market, which already makes up 30% of its exports.
Russian coal output has been growing steadily over the last years and jumped by 17% from 330 Mt in 2012 to 387 Mt in 2017. In 2017, exports reached an all-time high of 191 Mt. Russia expects to produce around 420 Mt of coal for 2018 and to overtake the highest level of coal production achieved by the Soviet Union in 1988.
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