OREANDA-NEWS. October 2, 2008. Belon Group continues implementing the programme of cost and loss reduction, which was launched in 2007. Its main goal is to ensure significant reduction in the waste of resources.

All the enterprises and subdivisions of Belon Group are involved in the programme’s implementation. Their work is monitored by a specially established commission composed of the employees of the managing company (Sibir-Ugol Production Association) and of the Belovo-Belon Office.

By the results of 2007, the achieved cumulative benefit amounted to RUB 94.0 mln. The greatest impact was seen in the Belovskaya Central Coal Preparation Plant and Novobachatsky open-pit mine; the lowest effect was registered at the Listvyazhnaya mine.

According to the Commission’s estimate, in the first six months of 2008, the cumulative benefit from the measures taken in the area of resource saving and technical innovation promotion at the enterprises of Sibir-Ugol Production Association amounted to RUB 50.4 mln. Good results were demonstrated by the Belovskaya Central Coal Preparation Plant, Heat Power Station Complex, Leninsk-Kuznetsky Construction Materials Plant, Belon-Gelologiya, and Novobachatsky open-pit mine. All these companies realized most of the planned measures aimed at cost and loss reduction, and the benefit gained by these enterprises revealed to be higher than expected. The Belovskaya Central Coal Preparation Plant demonstrated the best results; the Plant's employees managed to realize the target of reducing non-optimal costs by 260%. The Listvyazhnaya mine is among the lagging companies.

The Company supports and encourages those employees whose initiatives have brought additional economic impact. By the results of the programme’s implementation in the first six months of 2007, 338 company employees who had been involved in these activities were remunerated to the total amount of RUB 1,945,000.

According to the results of the last six months of 2007, the amount of incentive paid reached RUB 3,738,000, whereas the number of employees who received such remuneration totalled 419 persons.

Based on the results of the first six months of 2008, the Group’s management is planning to set the aggregate resources of the incentive fund at RUB 2–2.5 mln. The final decision regarding the incentive amount will be passed after all the enterprises confirm the evaluated efficiency of the measures taken.

By the end of 2008, through the implementation of the cost and loss reduction programme, the Group is planning to get the net economic impact of RUB 142.3 mln, and to transfer up to RUB 7 mln to the programme participants’ incentive fund.

The main target for this year is to involve more ambitious and self-motivated employees of different levels in this work.