The working meeting of Bogatyr Coal LLP management with the labor collective of the mine

Serik Raipov: Our task is to retain a prime cost and reduce costs

On February 3rd in the administrative building of Bogatyr coal mine there took place the working meeting of Bogatyr Coal LLP management with the labor collective of the mine. The participants of the meeting were General Director of Bogatyr Coal LLP Serik Raipov, Executive Director Kairat Rgaibek, Director for Personnel and Social Policy Erken Rakhmangulov, Chairman of the Trade Union Committee of the partnership Kairula Turatayev, Director of Bogatyr coal mine Serik Makarov.
The main report on the results of the production and economic activity of the partnership during the last year and perspective plans was made by General Director of Bogatyr Coal LLP Serik Raipov.

Giving the evaluation of the last year results Serik Raipov noted:

- As a whole, taking into account the complicated situation in the economy we worked not bad last year. The plan was 32,5 mm tons, the company mined 34,5 mm tons of coal. At the same time in comparison with 2014 there was some reduction of the volumes, what is explained by the reduction of demand from Russian customers, and also reduction of power generation at local power plants. The current year for the economy of Kazakhstan and Russia will be also difficult. In comparison with 2014 the prime cost of our coal in 2015 increased, and it is anticipated that in 2016 it will be even higher. Nevertheless, we took hazards and were one of the first mining enterprises of the region fulfilling the conditions of the collective agreement, we made wage indexation by 12,6%.

In 2015 the big work was carried out in the company – over 5 billion KZT were invested in support of the existing facilities. At the same time it should be taken into account that the prices for equipment and materials to be purchased went up significantly, the price increase made over 70%, and the growth of a coal cost made 7% only. The main task for this year is to retain the prime cost of our products on the level of 2015. I rely on the whole labor collective of the enterprise in achieving the set up task.

The company allocated over 200 million KZT for charitable purposes and support of regional projects in 2015. The company policy will get its continuation in this direction.

Last year within the frames of implementation of the housing program the company allocated interest-free loans to 30 employees of the enterprise to the total amount of over 37 million KZT. Like in the past the development of mass sport will be supported.

Speaking on the tasks for this year, Serik Raipov underlined that despite all difficulties in the economy, the company shareholders gave the assignment not to make personnel cuts. The internal reserves will be searched for account of cost optimization and reduction.

The remaining complicated situation in the economy makes be careful in the forecasts for this year. By Serik Raipov, having the production plan for 2016 on the level of 32 million 500 thousand tons and contracts concluded for 37 mm tons, the company management does not exclude a probability of coal demand reduction from Ekibastuz power plants ## 1 and 2, and also from Russian customers. The situation is also made complicated by the growing competition in the internal market. Among the suppliers of solid fuel there emerge new players, one of which is Kazakhmys company. The determining factor in these conditions is a coal price.

Nevertheless, looking into the near future the company management connects its hopes for growth of coal production with the construction and start-up of Balkhash thermal power plant by 2020, and also the growth of consumption at Ekibastuz power plants. The management counts to retain the profitability of the enterprise and achieve new production capacities for account of modernization of existing production and implementation of the cycle and flow technology project.

Having stated the vision of the company management on perspective development plans, General Director answered the questions of the miners.

Particularly, answering the question on the probability of operations stoppage in summer General Director explained the enterprise management does not plan on such a stoppage, and all will depend on coal demand from power and thermal power plants.

There was a question from the bucket-wheel excavator crew of Kanlybay Umbetaliyev on the purchase of lamps and tools, which was answered by Executive Director of Bogatyr Coal LLP Kairat Rgaibek.

In addition to it, Kairat Rgaibek gave comments on the issue on terms and procedure of contracts conclusion according to the acting Regulations of goods, works and services purchases.

On the social aspects of the company work the explanations were given by Director for Personnel and Social Policy Erken Rakhmangulov, Chairman of the Trade Union Committee of Bogatyr Coal LLP Kairula Turatayev.

Photo by Oleg Malchuk


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