Kuzbass is one of the largest and most famous coal deposits in Russia. The quality of coal mined here, according to experts, is beyond doubt - it is one of the best and most versatile in the world. At the same time, the factor that, according to many analysts, can play a negative role in the development of the field is the geographical location of the Kuznetsk basin. The region of Russia in which the work of the enterprises of Kuzbass is concentrated, the Kemerovo region, is sufficiently remote from many coal consumers, which could become key for local enterprises.
At the same time, there are quite real prospects for the further development of Kuzbass, as many industry experts believe, and effective work in this direction is ongoing, judging by the dynamics of coal mined here in recent years. Local enterprises, judging by this indicator, were able to successfully overcome the crisis of 2008-2009. How do coal industry companies compensate for the not quite optimal, judging by some estimates, geographical location of the Kuznetsk basin in relation to consumers?
Kuzbass: general information
The Kuznetsk basin is considered a field where huge coal reserves are concentrated - one of the largest in the world. It is located in Western Siberia, mainly in the Kemerovo region. "Kuzbass" (one of the unofficial names of this region) is surrounded by the Alatau Mountains, Shoria and Salair Ridge. Coal was first discovered here at the beginning of the 18th century. But the region began to acquire industrial significance in the 1840s after assessing the reserves of the main mineral resources in the Kuznetsk Basin. Today, one of the largest industrial complexes is located in Kuzbass, which is engaged in the extraction of coal from the bowels of the earth and its subsequent processing. Now there are several dozen mines and enterprises engaged in open-cast mining in the basin.
The current dynamics of coal extraction from the subsoil is more than 200 million tons per year. The geographical location of the Kuznetsk coal basin in terms of economic profitability is causing discussion among experts. It is believed that Kuzbass is not quite well located - it is far from the main buyers of coal, and the transport infrastructure in the region is not the most developed. That is, profitability is estimated as not high enough, mainly in such an aspect as the geographical location of the Kuznetsk basin relative to the consumer. There is a more moderate point of view. According to it, the profitability of Kuzbass is consistent with the performance of most other Russian and many world deposits.
Coal mining and processing
Where is the Kuznetsk coal basin, we now know. Let us now examine in more detail what is the activity of enterprises concentrated in its area. Coal mining is carried out here in various ways: underground, open, as well as hydraulic. Of course, the first prevails - it accounts for about 65%. About 30% of coal is mined in an open way. In the basin area there are also several dozen coal enrichment plants.
The level of equipment of production with mechanized equipment is estimated by experts as high. Thanks to appropriate technologicalization, to a certain extent, if we talk about the pessimistic assessment that we have given above, the not quite optimal geographical location of the Kuznetsk basin. That is, the profitability of production is enhanced by the extensive introduction of machinery.
How did the field appear
Having found out where the Kuznetsk coal basin is located, we can take a different kind of useful excursion into the geological history of the deposit. Coal is a mineral resource whose resources have been formed over millions of years. It is believed that its main strata formed here in the Jurassic period. However, the first coal-bearing complexes appeared here already in the Perm period, that is, about 250 million years ago. Before that, as the geologists managed to find out, Kuzbass was at first a gulf of the sea, and later a plain with a large area of swamps.
Natural and anthropogenic development factors
It is useful to study not only the geographical location of the Kuznetsk coal basin, but also aspects that reflect how the mechanisms of interaction of key natural and anthropogenic factors are arranged in its area. The Ob River forms the so-called "hydrographic" network. At the same time, the basin is also crossed by the Tom River, the water resources of which are used for industrial and domestic needs of the region.
A fairly high level of urbanization has been achieved in the western part of the field. The greatest influence of the anthropogenic factor is observed in areas located north of Kemerovo, as well as near Mezhdurechensk.
Coal properties
Not only the geographical location of the Kuznetsk Basin determines the profitability of the industries operating here. The most important aspect is the properties of coal, its quality. What are the features of the main mineral extracted here? Coal of Kuzbass is rather mixed. However, the quality of most of their varieties is estimated by experts as high. There are varieties with a high indicator for vitrinite - up to 90%, calorific value - up to 8600 kcal / kg. Kuzbass coals can be used as fuel for the needs of the coke industry and chemical industry. The most important property of the main mineral of the Kuznetsk basin is its susceptibility to processing. This opens up great potential in the further development of the field and localized enterprises in it. In particular, a significant percentage in the export of companies employed in the industry may comprise not only coal, but various kinds of value-added products based on it. In addition to coal, in the Kuzbass region there is also the opportunity to produce some types of natural gas. And this is another promising direction in the development of the field and the region as a whole.
Economic outlook
What are the practical indicators of the enterprises of Kuzbass? How significant is the geographical location of the Kuznetsk coal basin in terms of prospects for further development of the deposit? Analysts, as well as representatives of business circles involved in the industry, characterize the situation with the coal industry in Kuzbass as difficult. In the past few years, there has been some volatility in the rate of extraction of the main mineral. There is a version that this segment is particularly sensitive to crises. In particular, there is a fact - during the recession of 2008-2009, coal prices of some grades decreased several times.
At the same time, analysts believe that the prospects for the development of the field are very diverse. What is very important - the ability of local enterprises to adapt to crisis conditions has been proved. We noted above that the cost of coal has declined during the crisis. After strong growth in the 2000s, production in Kuzbass decreased in 2008-2009. But already in 2010, local mines reached the level that was before the recession. In subsequent years, the rate of coal mining in Kuzbass steadily increased.
One of the key areas in the development of the field, according to some experts, is the search for new markets. To which, in particular, the position of the Kuznetsk basin with respect to transport routes is optimally adapted. Among the most urgent problems of Kuzbass is the high cost of delivering coal classified as low quality.
At the same time, experts highly appreciate, as we have said, the quality of coal. In this connection, the costs that determine the position of the Kuznetsk basin regarding transport routes can be offset by the interest of industrial enterprises in the purchase of guaranteed high-quality fuel in the Kuzbass. In many cases, as analysts emphasize, coal from the Kuzbass even in the countries with the most developed economies may well be the basis for profitable production. For example, in Japan there are several enterprises that are engaged in the deep processing of fuel from Russia, as a result of which the output is products that are in demand by the market and have high added value.
Among the possible products that may result from the deep processing of coal from Kuzbass are the so-called “synthesis gas”. It can be used at thermal power plants as a component in the production of various components for the chemical industry. In addition, methane can be produced in coal seams, and in large quantities. In the late 2000s, one of the first projects in this direction in Russia was introduced in the Kuzbass.
The prospects for the implementation of such initiatives, according to analysts, are most obvious - in fact, a new national industry will be created, new types of products will be launched, innovative technologies, services will be introduced, and additional jobs will be created. As for coal methane reserves - in the Kuzbass, according to many analysts, this is all right. It is known, for example, at the Taldinskoye field that the corresponding reserve exceeds 40 billion cubic meters.
Considering that the transport and geographical location of the Kuznetsk basin is characterized by many experts as not the best, the emphasis in the further development of the field should, as some analysts believe, put on export not so much coal itself, but its processed products. The realization of prospects in this direction depends on three main factors. Firstly, this is an expansion of our presence in the domestic market, and this, of course, depends on our readiness to increase the intensity of coal use by enterprises in the electric power industry. Secondly, it is a policy to protect the interests of the field enterprise in the aspect of their interaction with external players - the success of this area of work, in turn, depends, experts say, on the readiness of government structures to implement consistent protectionist measures. Thirdly, the availability of loans and other investments - this factor is mainly determined by the activity of financial players.
Coal preparation as a top priority
One of the most promising, according to many experts, directions in the development of Kuzbass, as well as the entire coal industry of the Russian Federation as a whole, is the construction of coal enrichment complexes. At the moment, the dynamics of introducing an appropriate technology focus in Russia is estimated by analysts as not the highest. For example, in many other coal-mining powers - Australia, or South Africa - enrichment has been introduced in almost all industrial sectors. If the Kuzbass will have the same thing, that is, a chance, analysts believe that the position of the Kuznetsk basin with respect to consumers and transport routes will in principle be minimized in terms of the impact on local enterprises' economic profitability.
Moreover, already now in Kuzbass there are tangible results of work in this direction. The share of enrichment in coal processing here is more than 40%. Speaking specifically about the so-called "energy" varieties - more than 25%. This is several times more than, for example, in the early 2000s. In the Kemerovo region there are several dozens of enrichment enterprises. Most of the new mine projects, one way or another, are related to the integration of coal enrichment factories into the structure. At the same time, a significant emphasis in the application of technologies by enrichment plants is placed on the ability to process any kind of coal - both energy and coking. At the same time, a certain percentage of capacities of the corresponding type that are located in the Kuzbass, as many experts believe, have outdated funds. Many of the processing plants have been operating for over 50 years. Analysts believe that it is necessary to modernize production resources.
Innovation
One of the key areas in improving the profitability of Kuzbass enterprises is the introduction of innovations. Successful activity here largely does not compensate for the most optimal, if one of the above versions is followed, the position of the Kuznetsk coal basin relative to transport routes. In particular, in the late 2000s, a specialized technopark was created in the region, within the framework of which a variety of technologies are developed and implemented that increase the efficiency and safety of coal mining. There are mines in the Kuzbass where the extraction of minerals from the bowels of the earth is fully automated - labor productivity on them is much higher than in ordinary ones.
Government support factor
Above, we have already described the mechanism of interaction of key factors on which the success of the further development of Kuzbass depends: the expansion of the domestic market, protectionism of the authorities, as well as the activity of businesses and investors in terms of lending and financial support to industry enterprises should become the basis for the growth of the segment. We also saw how promising and potentially cost-effective the Kuznetsk coal basin is, whose geographic location with respect to consumers is not considered by many experts to be the most optimal.
However, the function of the state is supposed to be, as analysts believe, even more significant, going beyond the scope of protectionist measures. Features of the work of enterprises, which determines the geographical location of the Kuznetsk coal basin, are known to government experts. And therefore, they should understand, as analysts believe, that without appropriate measures of state support for the coal industry in Russia and Kuzbass it will be difficult.
It is not enough, experts say, to confine oneself to declaring interest through the publication of numerous industry programs. Among the real effective measures that can contribute to the development of the coal industry - such as, for example, preferential treatment in terms of VAT. Another option is to improve policies in the field of debt restructuring of unprofitable enterprises in the industry, as well as the liquidation of uncompetitive firms. In particular, in the second aspect, the state could take on a part of social obligations.
Another possible measure, under which the authorities can support the enterprises of Kuzbass, is assistance in obtaining cheap loans. Or, as an option, to compensate part of the interest on loans, which are likely to grow significantly in the current political situation.
