Today, I had a productive meeting with Serhiy Voronin, the CEO of "DTEK Pavlogradvuhillia." We discussed, among other things, supporting communities in the process of preparing for the future closure of mines.
To give you some context, "DTEK Pavlogradvuhillia" is a major coal mining company operating in Western Donbas (Dnipropetrovsk region). As of today, the company employs about 17,000 workers, over 2,000 of whom have been mobilized into the army. The average salary is 29,000 UAH, and the company extracts about 16 million tons of coal annually. The company is actively supporting the Armed Forces of Ukraine, having allocated over 300 million UAH for various military assistance since the full-scale invasion began.
In the conversation with Serhiy Voronin, we highlighted several key tasks that need to be addressed by communities in collaboration with the Association of Coal Communities of Ukraine for long-term success.
The first task is to convert the heating system from coal to alternative fuels. Currently, most communities in Western Donbas rely solely on coal for heating. Therefore, the closure of mines will primarily affect those communities that are not developing new projects or working on creating alternative heating sources.
The second task is to resolve the water supply issue. About 240,000 people are entirely dependent on the company's water supply. It is necessary to reconstruct the networks and modernize the equipment in the water supply system. Only after this can we expect stable and reliable water supply and reasonable tariffs.
The third task is to create new jobs. Most mines in the region will be closed over the next 10 years. Therefore, each community needs to seek alternative sources of tax revenue. Today, the company pays 8.5 billion UAH in taxes annually, with about a billion UAH remaining in the region. These funds can gradually be spent and wisely invested during the mine closure process.
Before the large-scale war, "DTEK Pavlogradvuhillia," together with the communities, developed several projects for alternative heating, job creation, and industrial development. In the future, the company intends to closely cooperate with the Association to revive, refine, or improve these projects, find the necessary funding, and ensure that the residents of coal communities feel safe and have opportunities for education, development, and decent, well-paid work.
