Russia's coal industry is undergoing a major restructuring in an effort to make the industry more efficient and profitable. In order to achieve this, the Russian government intends closing several unprofitable producers, including some 150 producers that collectively produce 34 Mt by 2002. Unfortunately most demand for coal is located in the western parts of the country, resulting in high transport and energy costs. Export prospects look low due to high transport costs and loss of coal quality during transport. However, financial constraints have delayed their completion.
Talks are under way with foreign equipment suppliers.
A feasibility study over the Elga deposit located in Russia's Far East has been completed.