OREANDA-NEWS. September 23, 2008. The audit carried out at the beginning of September by the State Property Fund of Ukraine  to control the compliance of the terms and conditions of the purchase-to-sale agreement for the control stock of shares of OAO "Krasnodonugol" by Avdeyevka Coke and Chemical Plant, confirms that the Company has performed the specified terms and conditions in full volume, reported the press-centre of SCM.

"Krasnodonugol" performs its investment obligations on development of mines in full volume. In 2005-2007 Avdeyevka Coke and Chemicals Plant (AKHZ)allocated UAH 550 million for these purposes and upon the results of 2008 AKHZ is to invest additional UAH 200 million.

Total volume of investments from different sources for "Krasnodonugol" development is projected in the amount UAH 671 million this year. Out of them, UAH 420.6 million were invested in January -August 2008, including: UAH 183.4 m. —into equipment and equipping of new longwalls,  UAH 96.8 m. -into headings and UAH 80.2 -into capital construction.

Overall, in 2005-2008 about UAH 1.8 billion were invested into development of the mining company.

At present Krasnodonugol provides the required safety level of mining works. General occupational injury rate at the Company reduced by 53.5% from 2005 till 2008. Employees of the Company are provided with the necessary working clothes, shoes, individual and collective protectors and special meals. In January- August 2008 the plant allocated about UAH 32 million on health and safety activities, including more than UAH 11 million on purchase of individual and collective protectors.

Employees of OAO Krasnodonugol get salaries on time, two times per month. The plant does not have any delays on salary payments. Base wage rates and salaries get increased according to the acting legislation and the collective agreement executed between the company's management and the labour team.

Krasnodonugol performs its medical, sanitary and utility and social obligations to the company's employees specified by the Collective Agreement in full volume. The plant supports health improvement facilities, a children camp, diagnostic and treatment centre and two centres for disease control and prevention.

In 2005-2008the plant spent about UAH 4 million for diagnostic and treatment centre of Krasnodonugol (capital construction, purchase of modern medical equipment and appliances, etc.). Employees of the plant and its veterans are provided with free coal for household needs; Krasnodonugol allocates about UAH 14 million annually for these purposes. 

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The audits of the State Property Fund of the previous years of operation also confirmed that AKHZ performed the obligations it had committed when purchasing the control interest of Krasnodonugol in November 2004.

State Property Fund of Ukraine sold the control interest of Krasnodonugol to Avdeyevka Coke and Chemical Plant (60% of the authorized stock) at the tender, which took place in November 2004.