OREANDA-NEWS.  Kyiv, 20 June 2014. DTEK started to supply coal to Mexico. In May and June, we will ship 22,000 tons of anthracite to ArcelorMittal Las Truchas, the Mexican division of the world’s largest steel company.

DTEK’s strategy is to expand into new coal markets and focus on cooperation with end consumers. In 2014, the company started supplying coal to end consumers in Brazil (55,000 tons of A grade coal), Morocco (71,000 tons of T and G grade coal), and the United Kingdom (250,000 tons of G grade coal). Having a presence in the Mexican market will strengthen DTEK’s position as Ukraine’s leading coal exporter and one of the largest anthracite exporters in the world.

DTEK’s trading strategy provides for direct supplies on a Cost Insurance Freight (CIF) basis. DTEK started to operate on the global freight market in 2013 and continued to successfully charter ships on favourable market terms in the first quarter of 2014. From January to March, the company entered into freight contracts for the transportation of more than 1,000,000 tons of coal, which already exceeds the freight volume for all of 2013.

“The growth in coal sales to iron and steel makers in Europe, Asia and Latin America proves that Ukrainian anthracite is suitable for coke substitute technologies,” says DTEK’s Commercial Director Andrey Favorov.“We appreciate the trust of our foreign partners and are looking forward to further productive cooperation with ArcelorMittal in Latin America and Europe.”

In 2013, DTEK increased coal supplies to external markets by 72.7% to 4,740 million tons. Supplies to new non-traditional markets grew to 1.26 million tons, compared with 0.34 million tons in 2012 (+267% YoY). In 1Q 2014, DTEK increased coal supplies to external markets by 68.1% YoY to 1.17 million tons, and in March of this year coal exports reached an all-time high.

DTEK plans to scale up supplies of Ukrainian coal to Southeast Asia, China, India, Latin America, Africa and neighbouring countries Bulgaria and Turkey.