1. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Master Plan Background Information Background Information

2. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Content Analysis of Ukrainian hard coal sector Mine evaluation and classification Determination of potential for supply Analysis of future demand Development of “coal supply lines” Recommendations and development of a restructuring programme

3. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Analysis of Ukrainian hard coal sector Production decline Unfavorable geological conditions Low coal quality Years of non-investment in modern equipment Manual work Low safety at work in general Low productivity High production cost

4. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Analysis of Ukrainian hard coal sector Great dependence on subsidies Monopoly of the state-owned company “Ukrainian Coal” Lack of young workers due to low prestige and dangerous working conditions Environmental impacts Bureaucracy, corruption and non-transparency

5. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Mine evaluation and classification Mine Evaluation 134 mines assessed Geology Technology Socio-economic issues Visits, interviews, public statistics Development of mine passports: main information about mine including necessary investments recommendation for classification

6. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Mine evaluation and classification

7. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Mine evaluation and classification

8. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Mine evaluation and classification

9. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Mine evaluation and classification Mine Classification Industrial reserves Capacity Potential lifetime Coal mark Geological conditions Current production, degree of mechanisation Necessary investments 73 mines as category I 20 mines as category II 24 mines as category III 17 mines were not classified

10. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Determination of potential for supply Determination of Potential Mines of cat. I and II could produce Steam coal: 25 Mt in 2012 and 40 Mt in 2020 Coking Coal: 14 Mt in 2012 and 21 Mt in 2020 Anthracite: 15 Mt in 2012 and 32 Mt in 2020 Methane: 3.5 billion m³/a emission > 12 trillion m³ resources Investments: 50 billion UAH to maintain all mines with sufficient reserves New mines

11. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Analysis of future demand Determination of Coal Demand Macroeconomic development Energy mix Steel sector development Implementation of energy efficiency measures Development of renewable energy sector Domestic competitiveness of coal International competitiveness Potential environmental restrictions

12. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Analysis of future demand Determination of Coal Demand Development of different scenarios: Reference scenario Coal scenario Natural Gas scenario Metallurgy scenario Renewable scenario Efficiency scenario

13. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Analysis of future demand

14. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Analysis of future demand OPTIMISTIC scenario – mainly the “Coal scenario” REALISTIC scenario – the “Reference scenario” as most likely one and CONSERVATIVE scenario – mainly represented by the above mentioned “Efficiency scenario” and environmental restrictions

15. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Development of “coal supply lines” Conservative: 86 Mt in 2020 – currently state owned: 50 Mt 21.7 billion UAH investment Realistic (most likely): 94 – 96 Mt in 2020 – currently state owned: 61 Mt 26.4 billion UAH investment Optimistic (most coal “friendly”): 102 Mt in 2020 – currently state owned: 56 Mt 21.5 billon UAH investment

16. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Development of “coal supply lines” Mines should work close to capacity Concentration on mines with higher shaft capacity Some reserves left in calculation to avoid shortages due to unforeseen impacts Sector can be free of subsidies after 2014/2015 Decisions have to be reassessed with changing (world) market conditions!

17. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Coal sector restructuring programme 1.Mine Privatisation Programme 2. Mine Closure Programme 3. Occupational Health and Safety Programme 4. Environmental Mitigation Programme 5. Social Mitigation Programme

18. “Coal Sector Policy Support Programme” This project is funded by the European Union Implemented by Human Dynamics Consortium Mine Closure Programme 29 mines Start 2011 Budget: 4 billion UAH End 2015 After 2013 maybe additional 27 to 39 mines are to be closed (especially steam coal) New Assessment 2012/2013