The Raspadskaya mine, where at least 43 people died in an accident at the weekend, was one of the world's most technically advanced coalmines after a major investment program, a Russian business daily reported on Tuesday.
Vedomosti reported that over the past five years $1 billion had been invested in equipment and safety at the west Siberian mine, where 47 people are still missing underground following the two explosions, which also injured 70 people.
Russia's biggest coal mine producing 10% of coking coal in the country, Raspadskaya is characterized by excessive concentrations of methane, a gas that is released from coal or surrounding rock strata in the process of coal mining, Vedomosti reported
Therefore, about $1 billion was invested in the coalmine to make it the world's most technically outfitted mine, including in terms of methane safety, Kemerovo Region Governor Aman Tuleyev said, according to the paper.
At the time of the explosion, however, the concentration of methane in the mine was within permissible limits, the paper said, citing Raspadskaya's deputy general director, Vladimir Goryachkin.
The timeframe for the repair of the coalmine has not yet been defined and damage from the explosion has not been calculated as the main thing now is to find people still missing in the mine, Raspadskaya spokeswoman Galina Kovalchuk said.
The coalmine near the town of Mezhdurechensk in the Kemerovo Region belongs to the Raspadskaya Coal Company, which is owned on a parity basis by Evraz steel and mining group and the company's management.
It is hard to say yet how the blast will affect the situation on the domestic coal market. If repairs take a month, this will hardly affect the market as contracts with steel companies are signed for three months and both Raspadskaya and its clients still have available coal stocks.
However, if repairs take from three to six and more months, this will create serious problems for the market, Vedomosti said, referring to experts.
Raspadskaya supplies coal to Russian steel giants Evraz Group, Novolipetsk Steel and the Magnitogorsk Metals Works (MMK). Coal supplies from Raspadskaya accounted for slightly over 10% of the coal requirements of MMK, the company's spokesman said. In case of need, MKK will easily find alternative sources of coal, the paper said, adding that it had failed to receive any comment from Evraz or Novolipetsk Steel.
Raspadskaya shares plummeted 14% on the Russian stock market on Tuesday, the first day of trading after the Victory Day celebrations in Russia.
MOSCOW, May 11 (RIA Novosti)
