Abstract
The price is one of the most important external factors affecting the effectiveness of coal mining companies. The prices for many commodities, including exported coal, form in the financial speculative market which often have nothing to do with the real sector of the economy. In this difficult, frequently unpredictable terms coal companies have to conform both under periodic and chaotic fluctuations of annual and subannual prices. Periodic price instability of coal process and variability of the most important indicators of geological, mining, technological, organizational, ecology and economy conditions of exploitation of the deposits cause inevitable fluctuations in profits. Profit in the proposed model of the relative change in profit in coal mines equals the algebraic sum of relative changes in seven factors (coal reserves in block, extraction ratio, losses, dilution, price per unit, total costs per unit, integrated factor taking into account mining emergencies caused by all the most important reasons, respectively). The impact of relative change price on the relative change in profit is always more significant than a similar relative change in any of the above factors. The article analyses the pace and scale of change of world market prices for coking coal. A 27% price of coking coal drop will result in a decrease in a coal company’s profit by 55% if the cost/price ratio is 0,5 and by nearly 135% if it is 0,8. This paper identifies key reserves of increase of profit of coal mine for price change of coal by improving coal quality, more extensive processing.
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Batugina, N.S., Gavrilov, V.L., Khoiutanov, E.A. (2020). A Proposed Approach in Estimating the Profit of Coal Mines Under Fluctuating Prices. In: Solovev, D. (eds) Smart Technologies and Innovations in Design for Control of Technological Processes and Objects: Economy and Production. FarEastСon 2018. Smart Innovation, Systems and Technologies, vol 138. Springer, Cham. https://doi.org/10.1007/978-3-030-15577-3_35
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