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{{short description|Russian business}}
{{short description|Russian business}}
{{Multiple issues|
{{Advert|date=May 2021}}
{{COI|date=May 2021}}
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{{Infobox company
{{Infobox company
| name = Siberian Coal Energy Company<br/>SUEK
| name = Siberian Coal Energy Company<br/>SUEK
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== Sustainability ==
== Sustainability ==
According to S&P Global Ratings, "while the coal sector faces increasingly immediate environmental and social risks, SUEK's mining segment outperforms peers on greenhouse gas (GHG) emissions", noting that "the company is generally in line with peers for its most material factors of safety and communities, but we note strong performance in workforce and diversity. Its governance structure compares positively to local standards and well with international standards.<ref>{{Cite web|title=ESG Evaluation: Siberian Coal Energy Co. {{!}} S&P Global Ratings|url=https://www.spglobal.com/ratings/en/research/pdf-articles/210129-esg-evaluation-siberian-coal-energy-co-100048694|access-date=2021-04-17|website=www.spglobal.com|language=en-us}}</ref> According to ESG Ranking of Russian companies 2021 by RAEX, SUEK ranks 11th out of 110 companies.<ref>{{Cite web|title=RAEX Europe - ESG Corporate Ranking|url=https://raexpert.eu/esg_corporate_ranking/|access-date=2021-04-17|website=raexpert.eu}}</ref>
According to S&P Global Ratings, "while the coal sector faces increasingly immediate environmental and social risks, SUEK's mining segment outperforms peers on greenhouse gas (GHG) emissions", noting that "the company is generally in line with peers for its most material factors of safety and communities, but we note strong performance in workforce and diversity. Its governance structure compares positively to local standards and well with international standards.<ref>{{Cite web|title=ESG Evaluation: Siberian Coal Energy Co. {{!}} S&P Global Ratings|url=https://www.spglobal.com/ratings/en/research/pdf-articles/210129-esg-evaluation-siberian-coal-energy-co-100048694|access-date=2021-04-17|website=www.spglobal.com|language=en-us}}</ref> According to ESG Ranking of Russian companies 2021 by RAEX, SUEK ranks 11th out of 110 companies.<ref>{{Cite web|title=RAEX Europe - ESG Corporate Ranking|url=https://raexpert.eu/esg_corporate_ranking/|access-date=2021-04-17|website=raexpert.eu}}</ref>

According to The Financial Times, SUEK "offers merit-based pay components", paying its workers "more than four times the salary ordinary workers in neighbouring mines say they get."<ref name=":2" />


According to Bettercoal and [[International Energy Agency|IEA]], SUEK produces coal sustainably with the best environmental technologies in coal mining including dust suppression and air filtering, methane capturing for energy generation, a closed water cycle with wastewater treatment, and land re-cultivation projects. As part of Bettercoal Code compliance audit in 2018, SUEK demonstrated best practice environmental performance in effective water and energy management, reducing hazardous waste and re-cultivation programmes.<ref>{{Cite web|title=SUEK Public Report - Bettercoal|url=https://bettercoal.org/resource/suek-public-report/|access-date=2021-04-17|website=Bettercoal is working towards a global responsible coal supply chain|language=en-US}}</ref><ref>{{Cite web|date=2020-06-29|title=Russia: SUEK flotation technology gives coal a deep clean|url=https://www.iea-coal.org/russia-suek-flotation-technology-gives-coal-a-deep-clean/|access-date=2021-04-17|website=IEA Clean Coal Centre|language=en-GB}}</ref>
According to Bettercoal and [[International Energy Agency|IEA]], SUEK produces coal sustainably with the best environmental technologies in coal mining including dust suppression and air filtering, methane capturing for energy generation, a closed water cycle with wastewater treatment, and land re-cultivation projects. As part of Bettercoal Code compliance audit in 2018, SUEK demonstrated best practice environmental performance in effective water and energy management, reducing hazardous waste and re-cultivation programmes.<ref>{{Cite web|title=SUEK Public Report - Bettercoal|url=https://bettercoal.org/resource/suek-public-report/|access-date=2021-04-17|website=Bettercoal is working towards a global responsible coal supply chain|language=en-US}}</ref><ref>{{Cite web|date=2020-06-29|title=Russia: SUEK flotation technology gives coal a deep clean|url=https://www.iea-coal.org/russia-suek-flotation-technology-gives-coal-a-deep-clean/|access-date=2021-04-17|website=IEA Clean Coal Centre|language=en-GB}}</ref>


According to the company, SUEK’s subsidiary SGC produces more sustainable energy in Russia by co-generation of electricity and heat which reduces the coal combusted and the environmental impact by 25% for the same output. SGC operates modern combined heat and power plants (CHPP) which reduce fuel use and emissions per unit of energy produced, with 96% for heat and 38% for electricity produced in the combined cycle. According to the company, co-generation reduces 10 times more CO2 emissions already today than from the use of all Russia’s renewables currently planned (including wind and solar), while it is 5-10 times more cost-effective in cutting CO2 emissions than are renewables (with 45% of electricity and 95% of heat in Siberia generated from coal).<ref name=":1" /><ref name=":3" />
According to the company, SUEK’s subsidiary SGC produces more sustainable energy in Russia by co-generation of electricity and heat which reduces the coal combusted and the environmental impact by 25% for the same output. SGC operates modern combined heat and power plants (CHPP) which reduce fuel use and emissions per unit of energy produced, with 96% for heat and 38% for electricity produced in the combined cycle. According to the company, co-generation reduces 10 times more CO2 emissions already today than from the use of all Russia’s renewables currently planned (including wind and solar), while it is 5-10 times more cost-effective in cutting CO2 emissions than are renewables (with 45% of electricity and 95% of heat in Siberia generated from coal).<ref name=":1" /><ref name=":3" />

The company has social programs and projects covered 60 cities and towns of Russia.<ref>{{Cite web|title=SUEK - Sustainability - Communities|url=http://www.suek.com/sustainability/communities/|url-status=live|access-date=2021-04-17|website=www.suek.com|language=en}}</ref>


== Performance Indicators ==
== Performance Indicators ==

Revision as of 23:45, 11 May 2021

Siberian Coal Energy Company
SUEK
Company typePrivate (Joint stock company)
IndustryCoal mining, heat and power generation
Founded2001 (2001)
FounderAndrey Melnichenko
Headquarters
Moscow
,
Russia
Area served
Siberia and Far East
Key people
Andrey Melnichenko (main beneficiary)
Samir Brikho (Chairman)
Stepan Solzhenitsyn (CEO)
ProductsCoal and energy
RevenueUS$6,683 billion (2020)
US$892 million (2020)
US$194 million (2020)
Total assetsUS$16,034 billion (2020)
Total equityUS$5,054 billion (2020)
OwnerAndrey Melnichenko (92.2%)
Number of employees
70,000 (2020)
Websitewww.suek.com

Siberian Coal Energy Company (SUEK) is Russia's largest coal company and one of the largest heat and power generators. It is one of the world’s largest coal energy companies and a top-5 global coal supplier.[1][2][3]

The company was founded in 2001, it is headquartered in Moscow.[4] The full official name is Joint-Stock Company Siberian Coal Energy Company (SUEK JSC). The head of the company is CEO Stepan Solzhenitsyn, son of novelist Aleksandr Solzhenitsyn.[1]

It is the world's fourth largest coal supplier by international sales (after Glencore, BHP Biliton, and Anglo American) and the fifth largest company by coal reserves.[1]

History

SUEK was based on the idea to consolidate disparate coal enterprises throughout Russian regions into a large industrial holding in the early 2000s.[5]

The assets that formed SUEK were distressed – the production capacity was less than 30 million tons per year, the enterprises employed 70,000 miners yet productivity was low, and virtually none of its output was exported. Amid the collapse of mining businesses and widespread miners strikes due to unpaid wages and poor working conditions, the average equipment depreciation was 90%.[5][6]

During the early years of the business, SUEK’s assets were modernized, debts were repaid, wages and taxes were paid, and a vast modernization program was launched with new equipment and machinery for all its units. The old mines and worn-out equipment were transformed into modern enterprises, several enrichment factories and modules were put into operation, incorporating the latest processing technologies that allowed SUEK to produce highly enriched coal with low impurity levels.[5][7]

SUEK built modern coal bulk terminals and upgraded seaports, and built Russia’s first coal mine methane processing station to generate power within the framework of the Kyoto Protocol. Russia’s first smart mining management control center was built to run all SUEK’s operations, monitoring the location and well-being of miners working underground.[5]

After the consolidation of electric power assets, the Siberian Generating Company (SGC) was created as a part of SUEK, and then spun it out as a separate company. It became one of the leading heating power energy holdings in the country and the fourth largest heat producer in the world. In 2018, SUEK took over SGC making SUEK as one of the world's largest coal energy companies.[8]

In the last 15 years, SUEK has invested US$10 billion in coal production and power generation.[9]

SUEK's assets produce nearly 110 million tons of coal annually and the company employs over 70,000 people.[10]

Owners and management

The main beneficiary of the company is Russian entrepreneur Andrey Melnichenko, who owns 92.2% of SUEK.

The CEO (General Director) from 2004 to 2020 was Vladimir Rashevsky, who owns 7.8% of SUEK.

Since May 2020, SUEK’s new CEO is Stepan Solzhenitsyn (who was CEO of SUEK’s energy division SGC), a former McKinsey Senior Partner in energy, and a son of novelist Aleksandr Solzhenitsyn.[11]

Chairman of the Board of Directors - Samir Brikho.

Operations

SUEK operates 27 open-pit and underground mines and 27 power plants in Siberia and in the Russian Far East, which produce about 24% of coal in Russia and generate 6% of Russia's electricity.[1]

SUEK's assets produce over 100 million tons of coal annually, with assured coal reserves of 7.6 billion tons.

Its coal, power generation and logistics enterprises in 12 Russian regions employ over 70,000 people.[12]

SUEK produces high-calorific coal with low sulphur and nitrogen content. According to The Financial Times, SUEK is Russia's largest producer of higher-quality thermal coal. As reported, according to the International Energy Agency's Clean Coal Centre, "SUEK, Russia's main exporter of higher-quality thermal coal, has invested in modern high-capacity washing plants and has ash control technologies at all its coal ports".[13] According to Bloomberg, SUEK is Russia's largest producer of higher quality thermal coal which focusses on "high-quality and less-emitting coal".[14][15]

SUEK uses automation and digitalization in coal mining. As The Financial Times reported, SUEK "is rolling out big-data tools and automation across its 26 mines in Kemerovo and elsewhere in Siberia. In some mining operations, it is even experimenting with completely replacing workers with machines" and that it "has piloted Russia’s first fully automated longwall in Polysaevo." [16]

SUEK supplies high-calorific value coal to 48 countries on 5 continents through its own sales and distribution network, including the Asia Pacific where coal plays a key role in energy access and new HELE (high efficiency, low emission) coal-fired power plants are being built to reduce their environmental impact.[1][17]

Sustainability

According to S&P Global Ratings, "while the coal sector faces increasingly immediate environmental and social risks, SUEK's mining segment outperforms peers on greenhouse gas (GHG) emissions", noting that "the company is generally in line with peers for its most material factors of safety and communities, but we note strong performance in workforce and diversity. Its governance structure compares positively to local standards and well with international standards.[18] According to ESG Ranking of Russian companies 2021 by RAEX, SUEK ranks 11th out of 110 companies.[19]

According to Bettercoal and IEA, SUEK produces coal sustainably with the best environmental technologies in coal mining including dust suppression and air filtering, methane capturing for energy generation, a closed water cycle with wastewater treatment, and land re-cultivation projects. As part of Bettercoal Code compliance audit in 2018, SUEK demonstrated best practice environmental performance in effective water and energy management, reducing hazardous waste and re-cultivation programmes.[20][21]

According to the company, SUEK’s subsidiary SGC produces more sustainable energy in Russia by co-generation of electricity and heat which reduces the coal combusted and the environmental impact by 25% for the same output. SGC operates modern combined heat and power plants (CHPP) which reduce fuel use and emissions per unit of energy produced, with 96% for heat and 38% for electricity produced in the combined cycle. According to the company, co-generation reduces 10 times more CO2 emissions already today than from the use of all Russia’s renewables currently planned (including wind and solar), while it is 5-10 times more cost-effective in cutting CO2 emissions than are renewables (with 45% of electricity and 95% of heat in Siberia generated from coal).[12][17]

Performance Indicators

Performance indicators for years, coal production amounted to:

  • 2019—101.2 million tons of coal[1][22]
  • 2019—106.2 million tons of coal[23]
  • 2018—110.4 million tons of coal[24]
  • 2017—107.8 million tons of coal[25]
  • 2016—105.4 million tons of coal.[26]
  • 2014 - 98.9 million tons of coal.[27]
  • 2013 - 96.5 million tons, which is 1% less than in 2012 (according to the company's annual report for 2013).
  • 2012 - 97.5 million tons of coal, which is 6% more than in 2011 (according to the company's annual report for 2012).
  • 2011 - 92.2 million tons of coal (an increase of 3% compared to 2010).[28] Reserves as of mid-2008 - 5.8 billion tons.

References

  1. ^ a b c d e f "SUEK - Overview". www.suek.com. Retrieved 2021-04-16.{{cite web}}: CS1 maint: url-status (link)
  2. ^ "Russia's leading coal producer SUEK joins World Coal Association". MINING.COM. Retrieved 2021-04-16.
  3. ^ АНО «Творческий коллектив Эксперт». "Крупнейшие угольные компании России". Expert.ru. Retrieved 2021-01-29.
  4. ^ "SUEK JSC - Bettercoal". Retrieved 2021-04-16.{{cite web}}: CS1 maint: url-status (link)
  5. ^ a b c d "SUEK - History". www.suek.com. Retrieved 2021-04-16.{{cite web}}: CS1 maint: url-status (link)
  6. ^ "400,000 Miners Strike in Russia". The New York Times. 1996-12-04. ISSN 0362-4331. Retrieved 2021-04-17.
  7. ^ "SUEK - Corporate social report 2001-2005". www.suek.com. Retrieved 2021-04-17.{{cite web}}: CS1 maint: url-status (link)
  8. ^ "Russian coal producer SUEK to take over Siberian Generating Company". Reuters. 2018-08-31. Retrieved 2019-02-21.
  9. ^ "SUEK - Investment Story". www.suek.com. Retrieved 2021-04-17.{{cite web}}: CS1 maint: url-status (link)
  10. ^ "SUEK - Data bank - Operational results". www.suek.com. Retrieved 2021-04-17.{{cite web}}: CS1 maint: url-status (link)
  11. ^ "Stepan Solzhenitsyn takes SUEK CEO position". AKM EN. Retrieved 2021-04-17.
  12. ^ a b "SUEK - Annual Report 2019". www.suek.com. Retrieved 2021-04-16.{{cite web}}: CS1 maint: url-status (link)
  13. ^ "Clean coal is part of the answer to the Paris Agreement". Financial Times. Retrieved 2021-04-16.{{cite web}}: CS1 maint: url-status (link)
  14. ^ "A Young Russian Billionaire Plants the Seeds of Future Success". Bloomberg.com. 2016-09-29. Retrieved 2021-04-16.
  15. ^ "Bloomberg: SUEK owner says fossil fuels won't be replaced by alternatives". www.suek.com. Retrieved 2021-04-16.{{cite web}}: CS1 maint: url-status (link)
  16. ^ "Financial Times | Russia's next revolution: how technology came to the mines". www.ft.com. Retrieved 2021-04-16.{{cite web}}: CS1 maint: url-status (link)
  17. ^ a b "WCA report: HELE coal-fired power mitigates more CO2 than renewables". World Coal. 2016-03-25. Retrieved 2021-04-17.
  18. ^ "ESG Evaluation: Siberian Coal Energy Co. | S&P Global Ratings". www.spglobal.com. Retrieved 2021-04-17.
  19. ^ "RAEX Europe - ESG Corporate Ranking". raexpert.eu. Retrieved 2021-04-17.
  20. ^ "SUEK Public Report - Bettercoal". Bettercoal is working towards a global responsible coal supply chain. Retrieved 2021-04-17.
  21. ^ "Russia: SUEK flotation technology gives coal a deep clean". IEA Clean Coal Centre. 2020-06-29. Retrieved 2021-04-17.
  22. ^ "SUEK - Annual Report 2020". www.suek.com. Retrieved 2021-05-11.{{cite web}}: CS1 maint: url-status (link)
  23. ^ "SUEK announces financial results for the full year 2020". www.suek.com. Retrieved 2021-04-17.
  24. ^ "SUEK increased coal production in 2018 by 2.4 %".
  25. ^ "SUEK published the results for 2017".
  26. ^ Enterprises SUEK produced 105.4 million tons of coal in 2016
  27. ^ SUEK in 2014 increased coal production to 98.6 million tons | Companies | PRIME Economic Information Agency <! - Title added by bot ->
  28. ^ "SUEK enterprises produced 92.2 million tons of coal in 2011". suek.ru. Archived from the original on 2012-05-04. Retrieved 2012-03-05.
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