The deadly blasts that damaged the main mine of Russian
coking-coal producer OAO Raspadskaya (RASP.RS) last weekend will
take several years to fix, but the company may have less money for
the repairs, business daily Vedomosti reports Wednesday.
As of Tuesday, the death toll from the disaster had risen to 52,
with 38 other miners missing, Russian news agencies said.
The operator of the Siberian mine hasn't stated the cost of the
damage, but Chief Executive Gennady Kozovoy told Prime-Tass that
company experts estimate the repairs will take several years.
Raspadskaya may have to bear the cost alone, Vedomosti notes:
According to its 2009 annual report, the company wasn't insured
against civil liability or losses of major equipment.
On the RTS stock exchange Tuesday, Raspadskaya shares closed
down 26.5% in a sell-off that also meant a loss in the company's
capitalization of $889 million, to $3.36 billion from nearly $4.25
billion.
A top manager of another coal company told the newspaper that if
Raspadskaya's mine has to be rebuilt, the cost could total $600
million to $700 million. If the damage is limited, the price tag
could be $150 million to $250 million to replace equipment and
repair the mine's infrastructure, he said, although flooding in the
mine would push the cost much higher.
If the mine remains out of service for the rest of this year and
Raspadskaya doesn't increase production at other sites, the
company's 2010 revenue could fall by more than 40%, to $550 million
to $600 million, said Boris Krasnozhenov, a mining and metals
analyst for brokerage Renaissance Capital.
Analysts agreed that the disaster is likely to cause a shortage
in Russia of coking coal, which is used as a fuel and to produce
steel. The Raspadskaya mine accounts for 13%-14% of the country's
output, according to Citigroup Inc.
Newspaper website: www.vedomosti.ru
-Dow Jones Newswires; 212-416-2900
