Mine with approximately 1000 workers ceased operations in Kemerovo
In the heart of Russia, the Kemerovo region's coal mines, particularly the Spiridonovskaya mine, have faced challenging times since 2023. The mine, which once produced approximately 214,000 tons of coal in the first half of the year, has been forced to halt production due to a severe lack of funds.
The Spiridonovskaya mine, a significant contributor to Kuzbass' coal industry, which produces around 80% of coking coals and 100% of highly valuable brands, reported a net loss of 1.8 billion rubles under Russian Accounting Standards in 2024. Despite generating a revenue of 2.2 billion rubles, the mine's financial struggles have been evident.
The crisis conditions in the coal mining industry in Kuzbass, as reported by Kemerovo Governor Ilya Seryoduk in February 2025, are a reflection of the complex set of factors affecting the industry. These factors include reduced capital inflow, sanctions and geopolitical issues, high operating costs, global energy transition, price volatility, domestic demand fluctuations, resource depletion, technical challenges, consolidation and rationalization, and labor reductions.
Many coal mining enterprises in Kuzbass have faced severe underinvestment due to rising production costs, lower profitability, and limited access to new financing sources. Western sanctions on Russia have constrained foreign investment and restricted technology imports essential for modernizing mines. Aging infrastructure and increasing costs for safety, environmental compliance, and energy have made mining economically unsustainable without substantial reinvestment.
Accelerated global moves towards green energy and commitments to reduce coal usage sharply reduced demand for thermal coal internationally. The coal market experienced price instability, deterring long-term investment by mining companies wary of uncertain returns. Changes in Russia’s domestic coal consumption patterns, prioritizing higher-grade coal or alternative energy sources, reduced the viability of some mines.
Many Kuzbass mines have exploited their most accessible coal seams, making further extraction more expensive and less profitable. Older mines like Spiridonovskaya faced growing technical challenges, including safety risks and the need for costly modernization to maintain operations.
Industry stakeholders pushed for consolidation, closing less efficient mines to focus on more productive sites. Companies have laid off workers as part of cost-cutting and automation strategies, further driven by shrinking operations. In some cases, it is necessary to put workers on standby or reduce staff, as seen at the Inskaya mine in 2025, where around 250 people were laid off.
Out of 151 coal-mining enterprises in the Kemerovo region, 20 are on the brink of bankruptcy, according to previous reports by Andrei Panov. Workers at the Spiridonovskaya mine have not received their salaries for over a month, as reported by the First Deputy Governor and Head of the Government of Kuzbass, Andrei Panov.
The coal industry in Kuzbass employs over 110,000 people, which is more than 70% of the total number of coal industry workers in Russia. Kuzbass' coal industry provides almost 60% of Russia's total coal production. However, these statistics may change as mines continue to struggle, with eight mines in Kuzbass stopping operations in 2024, affecting nearly 500 workers who did not receive salaries for several months.
The situation at the Spiridonovskaya mine serves as a stark reminder of the challenges faced by the coal industry in Kuzbass. The mine, which once employed 900 workers, has stopped operating due to a lack of funds. The mine owes approximately 90 million rubles in wage, vacation, and settlement debts.
Oleg Tokarev, the regional Minister of Coal Industry, reported staff reductions at some enterprises in January 2025. The mine's management decided to lay off 760 workers due to an "investment resource deficit" at the end of May.
As the coal industry in Kuzbass navigates these challenging times, it remains to be seen how the region will adapt and recover in the face of these interconnected economic, political, and industry-specific factors.
The Spiridonovskaya mine, a significant player in the Kuzbass' coal industry that supplies a large portion of Russia's coking and high-value coals, posted a net loss of 1.8 billion rubles in 2024, indicating clear financial difficulties. The crisis in the Kemerovo region's coal mining industry, which has led to eight mines stopping operations and thousands of workers being affected, is a reflection of a complex set of factors including reduced capital inflow, sanctions, high operating costs, global energy transition, price volatility, domestic demand fluctuations, resource depletion, technical challenges, consolidation, labor reductions, and declining international demand for thermal coal due to commitments towards green energy.
