Cost Minimization in Russia’s Mining Industry

Costs at coal mining companies are analyzed. The production dynamics of coal and other minerals is studied. By vertical and horizontal analysis of annual financial statements, the cost dynamics and structure at major Russian coal mining companies are calculated. The costs and financial results of mining companies are compared. A matrix describing the economic effects of cost minimization at coal mining companies proposed. The possibility of cost optimization by internal management mechanisms is assessed for Russian coal mining companies. A cost classification is proposed for coal mining companies, in terms of causative factors, responsible parties, risks, and so on.