Bloomberg reported that OAO Raspadskaya, the coal producer part owned by billionaire Mr Roman Abramovich lowered targets while working to restore output at its flagship mine to levels reached before blasts killed 90 miners last year.

Mr Gennady Kozovoy CEO of and coowner said “We have invested as much as USD 190 million so far in reconstruction of our main mine and will invest USD 80 million more next year.”

He said that “A series of blasts ripped through the mine also called Raspadskaya in May last year shutting down what was then the biggest source of coal for Russian steelmakers for about seven months. While an underground fire is still burning on one of the mine eight levels, oxygen flow to the blaze has been cut off.”

He added that “We now have 3,500 people working there, as before the accident.”

He said that “We plan to be able to produce 4.5 million tonnes of coal in the flagship mine next year while the company’s output will be 10.5 million tonnes. That compares with an estimated 1.4 million tonnes at the mine this year and 6.4 million tonnes companywide.”

Mr Kozovoy said “The site may produce as much as 7 million tonnes of coal in three years. The strategic target is to expand total company production to 17 million tonnes.”

Mr Kozovoy said the fire is expected to burn up about 11 million tonnes of the mine 700 million tonnes of reserves.

Mr Kozovoy latest estimates signal a further reduction after Raspadskaya in October cut its 2011 output forecast by about 20% to 6.8 million tonnes because of delays at the damaged mine. According to a production forecast in February, the company targeted output of 12.8 million tonnes in total next year including 6 million tonnes of coal at the flagship mine.

Raspadskaya exported its first coal since the accident in October. Mr Kozovoy said “Next year, we plan that exports will account for 30% of our sales, as was the case before the blast.”

(Sourced from Bloomberg)