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Why illegal mines can compete with the official coal industry

Primitive illegal mines (or "holes,” as they are usually called by miners) were until recently a kind of an open secret of the Donbas coal basin. Everyone, from top officials in the regional government to schoolchildren from a working village, knew about their existence. However, all pretended that there was no problem. Perhaps sometimes officials would let it slip for some impudent reporter to hear: saying there are some drawbacks, but the significance for the region’s economy is too great, so there is nothing to talk about.

Now the situation has changed. Directors of big mines in Shakhtarsk, Yenakiievo, Krasny Luch, Torez, Kirovske are raising a ruckus together: there is nobody to mine the coal — qualified miners leave for illegal mines which are in abundance. One can stop this outflow only by increasing salaries, but to do this the ministry of coal industry must adopt a new grid for production salaries. This, in its turn, is determined by the state budget: currently it is possible only for the budget of 2011. In the meantime, mines cadres quickly vanish.

In addition, the orotund director’s hubbub is not always sincere.

THE CASE STUDY

The first "holes” appeared in Donbas about 12 years ago, in the period of the infamous restructuring of the Ukrainian coal industry. In fact, it was a real mecha nism of destruction, when the surface complex of mechanisms of the mines, recognized by officials as "unpromising,” was cut by gas welders for scrap metal, while shafts leading to industrial excavation were slightly, just formally, exploded by ammonal and covered by surrounding junk.

However, local miners, almost all of whom were laid off, quickly realized that there was a lot of coal which could be excavated literally under their feet. And hoisting "the black gold” to the surface, despite the difficulties, was the only way they knew to earn a living. These "pioneers” went underground again, at their own peril.

I knew from the very beginning about the idea of my neighbor and classmate to excavate the old ventilation shaft and create a self-made mine there. Coming from the city to visit relatives to the slowly disappearing mine village, I listened to detailed local news, and Petro with his illegal mine was always in the center of it: once he got an odd idea to use his old motorcycle as a compressor to supply power for a pneumatic pick; then the inexperienced "businessman” was deceived for money by rogues who claimed they were investors. Later (when the self-made mine was actually ready) gloomy "tough guys” appeared in the forest to conduct a unequivocal conversation about their cooperation and their gua ranteed percentage of future profits.

It really took a long time to arrange a showing of Petro’s illegal mine (which, as it was mentioned, was not difficult to reach without guides and in slippers). Having apologized a dozen of times, my school buddy explained that now he had to ask his "boss” about such things, he can’t sell a sack of coal he personally cut without him.

After all, here we are on the old glade, which the locals quite naturally still call "Ventilator.” The heavily used automobile track attracts attention, it roams between trees and iridescently sparkles in the sun for it is richly covered by small particles of first-sort anthracite. A heap of coal of about seven to ten tons rests nearby. Without guards.

"Won’t it be stolen?” I ask naively, estimating in my mind that a big bucket of coal, according to local retail prices, costs 10 hryvnias.

  "They don’t steal over here,” explains the old friend, suddenly becoming serious. "Someone tried to, so they are still looking for him. You haven’t changed your mind about going down, have you?”

The test pit leading to the mine is carefully fixed by thick logs. There is no sense asking where the timber is from, for it is "nobody’s.” The metal crank with a steel rope and pail at the end, a little bigger than the well, gives no hope to see the wide world again, but it’s too late to retreat. I sit down, hold on tightly, trying to make a Gagarin-style joke before the start.

Below, it’s quiet and peaceful, as if you were walking down the cemetery and fell down into someone’s grave. The air is damp, but the water from the ceiling, despite my fears, doesn’t pour behind my collar. Only the tip of the tongue tastes a little sweet (what, according to signs of experienced miners, signals the presence of methane in the air). Somewhere above a shred of the real world dimly appears. And here — away from the old ventilation shaft, goes a low, as high as a coal layer, self-made drift. If you light with a miner’s flashlight, which I was providently supplied with on the surface, then among the posts of roofing an anthracite layer alluringly gleams, for the sake of which my childhood friend and his "employees” descend here. There, in the cling as high as a kitchen stool, they chisel the pillar in turns — a massif of coal deliberately left untouched so that the building of the ventilation station didn’t collapse and fall through.

As the pneumatic pick starts working, it becomes, to say the least, uncomfortable. Miners change every two hours, the overall duration of the work shift is not limited. When they lack air for breathing, miners have to disconnect the hose leading to the surface from the compressor and continue excavation somehow. The rest: the emission of dangerous gas, the probability of collapse, the acrid coal dust that tightly accumulates in one’s lungs, and even, as they say, a high level of radiation have to be ignored.

DOLCE VITA FOR SOME

According to the recent statement of the militia service on the struggle with economic crimes, there are about 400 secret mines on the territory of the Do netsk region. However, according to the statistics of the independent trade union of miners of Ukraine, there are much more illegal mines in Donbas — over six thousand. Where the "tails” of the coal layers actually reach the surface, they sometimes arrange self-made mines sacrificing their own dwelling. In "difficult” cases illegal undermining is done under housing buildings or railway tracks.

Just around the small town of Perevalsk there are so many "holes” that owners sometimes fight for a few square meters of attractive territory. As Lu hansk human rights activists who monitor the illegal work claim, every night a train fully loaded with illegal coal departs from the local railway station. Where does it go?

The question, by the way, is crucial. Let’s try to estimate. An average capacity of one "hole,” according to the conclusions of independent experts, is 15 thousand tons of coal daily. Consequently, overall they get to the surface (15 x 6,000) 90,000 tons of fuel. You won’t bring this amount in sacks to surrounding yards to sell it to elderly people "for the winter.” For comparison, in the press-releases on the website of the Ministry of Coal Production regarding the daily summary extraction at the state mines figures of 100,000-110,000 tons are mentioned. Thus a parallel, illegal coal industry confidently catches up with the official one.

As informed people in the region state, the connection between the "right” and criminal coal in Donbas is very tight, they are almost identical. The main buyers of the counterfeit fuel are the same state mines. Reselling the coal afterwards, they get a double profit: a mediator margin due to the difference in prices, and, in addition, budget subsidy for each ton of minerals, as if they were extracted there.

Let’s calculate once again, this time in financial terms. The owner of the illegal mine, paying workers no more than 100 hryvnias per ton, resells the coal (through a number of mediators) to the mine storehouse of ready product for 200-230 hryvnias. Then the coal is shipped to consumers for the average ta riff of 570 hryvnias per ton. That is every day Donbas illegal coal industry amounts to: (570-100) x 90,000 = 42.3 million hryvnias. Over 15 billion a year!

It is difficult to estimate the subsidy from the state budget, for costs are actually distributed in a "manual mode.” They are also "disguised” in different items of the budget expenditure. However, the overall subsidies scale of the current year is stated, they are predicted within the range of 9-13 billion hryvnias.

We naturally remember bearded Marx with his eternal (there is no escape from it) definition that beyond some limit there is no terrible crime one wouldn’t dare to commit for the sake of profit.

A STATE ORDER?  

The number of "holes” has increased geometrically in recent months. In Yenakiievo, the homeland of the current President Viktor Yanukovych, the owners of illegal mines literally sieged the working village of Olkhovatka, digging under dwellings, roads, and even the cemetery. In the Shakhtarsk district and the natural park "Donetsk steppe” hunters for coal by means of powerful excavators arrange self-made quarries, mercilessly damaging the landscape. As a result of the process intensification at "holes,” accidents with lethal implications became more frequent: thus, dead workers are just left on the territory of hospitals.

Illegal miners ceased hiding in forest belts and faraway steppe gullies, they impudently arrange their illegal business near highways, on the outskirts of big cities. By the way, the recent fashion is to decorate the hut over the "hole” with the flag of Ukraine.

There is some sense in it, after all. As specialists suggest, the Ukrainian economy is about to feel a severe lack of solid fuel. While the economic recession lasted at Ukrainian coal mines, no new drifts were cut, cutting and erecting fundamental underground hollows "for tomorrow” were ignored. It’s impossible to catch up with the lost time quickly, at the same time the severe deficit of three to five million tons of coal will be felt already at the beginning of winter. Next year the situation will get even worse. Here the government, which is helplessly buried in problems, unexpectedly makes use of exactly these self-made mines: the "black gold” is provided right now and cheaply, they don’t claim social protection, medical insurance or even official salaries, they fear miner’s stri­kes on the capital’s pavement. In addition, they ideally fit the criminal scheme of acquiring state subsidies which were for years elaborated and improved in Donbas. Today the illegal miners feel they are kings of the Donetsk steppe, they are sure: no one will hurt them.

Perhaps soon, just for fun, they will start placing red stars over the self-made mines, as during the Stakhanov times. For our state currently turns completely to the direction of the past. However, one has to walk there in some strange, partially criminal way.

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