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Ukraine set to reform coal industry - PM

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KIEV, August 22 (RIA Novosti) - Ukrainian Prime Minister Viktor Yanukovych said Tuesday the government plans to focus on reforming and developing the national coal mining industry to reduce its dependence on energy imports.

Yanukovych said he would personally supervise the reforms that will lead to the formation of a vertically integrated state company. The move will resolve existing problems with salary payments to coal miners, as well as debts between the coal industry and the electric power industry.

"I am sure we will be able to resolve this issue as early as this year," the prime minister said during a meeting at the Coal Ministry.

He instructed the ministry's officials to ensure the increase of coal output in the country to 80 million metric tons in 2006 and to develop a plan for coal production in 2007. Ukraine's coal production dropped 50% in 15 years, from 135.6 million metric tons in 1991 to 78 million in 2005.

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