Coal in the economy of Russia

Abstract

The report analyses the situation, issues and directions for development of Russian coal industry from the position of understanding of its role and meaning in the country economy as well as with consideration of problems of improvement of consumed coal quality including such processes as coal preparation and deep coal processing. In general the future of coal in the world is defined by its competitiveness. Being the cheapest type of fuel (in comparable terms) coal is surely going to be on demand, especially when we talk about developing economies. The future of coal in Russia is connected with modernization of physical resources not only in the industry but first of all in coal consumption. Development of coal consumption technologies, which includes expansion of high quality coal, adoption of coal gasification (technological restructuring), is one of the main tasks in the foreseeable future. Improvement of quality of coal that the markets are supplied with shall contribute to upturn in coal demand both in the world and in Russia. Development of coal preparation, new technologies introduction of its deep processing will help neutralize risks associated with high cost of its transportation and negative effect that coal consumption causes to the environment. The issue of extension of local use of coal is quite challenging, especially by means of development of chain of small municipal coal thermal power plants (regionalization of coal). The economic recovery for Russia should be closely connected to optimization of country fuel balance, while commitment to one fuel resource (gas) is jeopardizing the energy security of the country.