Coal mining in the Russian Federation at the beginning of the 2nd half of the year again plunged into losses
Sunday, September 27, 2020 - 11:23:48 AM
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For the first time, the negative financial result of coal companies exceeded the profit in the first quarter of 2020. The aggregate profit of the companies in the industry in January-March amounted to 40 billion rubles, and the loss – 85 billion rubles. Thus, amid falling coal prices, the negative balance was 45 billion rubles.

The next three months, the coal industry finished with a small but positive, according to the results of the first half of the year, the positive balance amounted to 10.7 billion rubles (profit – 81.1 billion rubles, losses – 70.4 billion rubles).

July brought a jump in losses to the industry, it follows from Rosstat data – this figure rose to 95.1 billion rubles, and the profit remained almost unchanged (81.8 billion rubles). Thus, the negative balance of coal companies in January-July amounted to 13.3 billion rubles.

The unfavorable external environment and the fall in coal prices, together with losses, brought the industry and relief from increased taxes. It was the coal mining industry that was initially the focus of the Ministry of Finance, which considered options for tax exemptions from sectors that benefited from the weakening ruble and high commodity prices.

Earlier this year, the ministry prepared a draft amendment to the Tax Code, which, in particular, introduced a “progressive severance tax” for the coal industry. Now coal miners pay a fixed mineral extraction tax: 47 rubles. for 1 ton of anthracite, 57 rubles. per ton of coking coal, 11 rubles. – brown, 24 rubles. – for other types of coal. The draft law of the Ministry of Finance provided that these rates are increased by a special coefficient characterizing the dynamics of world coal prices. It was proposed to set the cut-off price at 8,840 rubles / ton for anthracite, 8,125 rubles. for coking coal, 2275 rubles. for brown and 4485 rubles. for coal other than anthracite, coking and brown coal. The level of withdrawal of additional income from the sale of coal, given a favorable external economic situation, was planned at 0.4 for anthracite and coke and 0.15 for other types of coal.

At the end of May, this provision of the bill was publicly criticized by the co-owner of one of the largest coal producers in Russia. The chairman of the board of directors of Kuzbassrazrezugol, Andrei Bokarev, said during Innoprom-2020 that coal miners intend to ask the Russian government to abandon the idea of sharply raising the mineral extraction tax when the price of coal is above $ 62 per ton (apparently, it meant the cut-off price of 4485 rubles / ton) … “There is one moment that causes great concern – this is the introduction of a draft law on a differentiated approach to levying a tax on mineral extraction at public hearings. (…) The draft law introduced today contains this provision, which in a period when the market is low as it is today, nothing does not change from the point of view of tax collection, but as soon as it (the market) reaches a certain cut-off of $ 62 (for 1 ton of coal), and this is not the price of coal, but the price together with all transport services, there is a sharp increase in this tax “, – Bokarev said, recalling that earlier, President Vladimir Putin and Finance Minister Anton Siluanov stated that tax conditions would not change for six years.

At the end of June, it became known that the Ministry of Finance had abandoned the idea of introducing a mechanism designed to redistribute part of the revenues of the coal mining industry in favor of the budget, given a favorable external situation. And in September, an increased MET was proposed for a number of other types of solid minerals, and this time all decisions were quickly approved and adopted. In total, in 2021, enterprises of the metallurgical and chemical industries, according to the expectations of the Ministry of Finance, will pay about 56 billion rubles to the budget; the increased MET does not apply to coal mining. mining in the Russian Federation at the beginning of the 2nd half of the year again plunged into losses
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