OREANDA-NEWS. October 18, 2010. Ministry of Coal intends to start state owned coal mines privatization process in 2011, the Minister of Coal, Mr. Yashenko announced. According to Mr. Yashenko, the Ministry will put up for sale all of the state owned coal mines via the State Property Fund.

Millennium Capital sees this news as positive for the GenCos in the mid- to long-term. In the result of the privatization, the private investors will improve and modernize the coal mining companies that will lead to coal cost decrease and higher productivity. As Millennium Capital expects this will decrease the thermal coal prices for the GenCos and thereby increase theirs profitability.