Opportunities for Russian mining company development by their competitiveness

Transcription

1 Opportunities for Russian mining company development by their competitiveness improvement Aleksandr Nikolaevich Dulin Platov South-Russian State Polytechnic University (NPI) Russian Federation, Novocherkassk city, Rostov region, Prosvesheniya str., 132 Roman Aleksandrovich Dulin Platov South-Russian State Polytechnic University (NPI) Russian Federation, Novocherkassk city, Rostov region, Prosvesheniya str., 132 Mariya Anatolevna Komissarova Platov South-Russian State Polytechnic University (NPI) Russian Federation, Novocherkassk city, Rostov region, Prosvesheniya str., 132 Anna Anatolevna Smahtina Platov South-Russian State Polytechnic University (NPI) Russian Federation, Novocherkassk city, Rostov region, Prosvesheniya str., 132 Abstract The article describes the basic trends of mining company social and ecological sphere improvement. The criteria system is proposed, which allows to determine the level of domestic coal company competitiveness based on their industrial characteristics. The integral index of competitiveness was calculated for the Eastern Donbass coal mining enterprises during Keywords: enterprise competitiveness, coal companies, Eastern Donbass region. Page 458

2 Introduction In the current post-crisis terms, the economy of Russia is in the state of profound transformations, associated with the changes in property relations, the integration and globalization process strengthening, the tightening of competitiveness and production system control. One of the most important sectors of Russian economy is the fuel and energy complex. It is necessary to take into account the growing role of coal as one of the most promising energy resources in the fuel and energy complex structure [Makarov A.A., 2009; V.D. Marshak, Kryukov V.A., Kuznetsov A.V., 2011]. Today, Russia is the largest holder of coal reserves in the world and its role in the global energy market will grow, of course. The main competitive advantages of the coal industry are the favorable geographical location, a rich resource base, relatively low production costs and cheap labor resources. However, despite this, the developed conditions of the world fuel and energy market condition existence require the search for new ways and the development of the appropriate mechanisms for Russian coal mining company competitiveness support [Filatova O. Yu., 2008]. The external environment of coal mining companies represented the market conditions, social, legal system and base and other factors make an element of uncertainty. Therefore, coal companies must have sufficient competitive potential and to be able to react to the changes of the external and the internal environment. Besides, we consider it is reasonable to develop a system of criteria which allows to determine sufficiently the level of competitiveness in respect of domestic mining companies taking into account their industrial characteristics, which will make possible the analysis of the coal mining enterprise state for a separate region and offer a theoretically grounded strategy for their further development. Methods In accordance with the Energy Strategy of Russia until 2030 [Energy Academy, 2009], the main strategic objectives of the coal industry are: the satisfaction of internal and external demand for high quality solid fuel and its products; the improvement of coal production competitiveness in the conditions of other energy resources presence on markets; the decrease of harmful effects on the environment; the improvement of the safety level concerning mining company functioning. Besides, one may consider the strengthening and the expansion of foreign economic positions of Russia as a global goal within the conditions of transition to the new model of spatial development in respect of the Russian economy. These priorities for the strategic development of the coal companies are crucial from the standpoint of a state. During the activity of coal mines the following points are the most important ones: environmental damage and job losses due to the liquidation and the closedown of a large number of mines [Komissarova M.A., 2014]. In this regard, the effective development of coal companies demands not only the profit and competitiveness growth, but also a special attention to two above-mentioned components. Fig. 1 shows the main trends of social and ecological sphere improvement for mining companies, which need to be implemented in the course of strategic management performance concerning such companies. Page 459

3 Социально-экологическая сфера деятельности УК Обеспечение промышленной и экологической безопасности Совершенствование аудита в сфере промышленной и экологической безопасности Организация мониторинга экологических последствий ликвидации шахт Совершенствование технологий управления промышленной безопасностью Экологически безопасное размещение отходов Развитие социальной ответственности Обеспечение безопасности ведения горных работ Обеспечение комфортных условий труда Совершенствование трудовых отношений и оплаты системы труда Повышение эффективности корпоративной социальной ответственности Восстановление жизнеспособности моногородов на территориях угольных бассейнов Совершенствование подготовки кадров Совершенствование образовательных технологий в области охраны труда Повышение профессиональной компетентности персонала и руководителей Восстановление преемственности профессий шахтеров Развитие материальной базы для реализации переподготовки кадров Социально-экологическая сфера деятельности УК - Socio-environmental sphere of a CC Обеспечение промышленной и экологической беопасности - Industrial and environmental safety provision Совершенствование аудита в сфере промышленной и экологической беопасности - The improvement of audit in the field of industrial and environmental safety Организация мониторинга экологических последствий ликвидации шахт - Organization of monitoring concerning the environmental impacts of mine liquidation Совершенствование технологий управления промышленной безопасностью - The improvement of industrial safety management technologies Экологически безопасное размещение отходов - Environmentally friendly waste disposal Развитие социальной ответственности - The development of social responsibility Обеспечение безопасности ведения горных работ - Mining operation safety provision Обеспечение комфортных условий труда - The provision of comfortable working conditions Совершенствование трудовых отношений и оплаты системы труда - The improvement of labor relations and labor remuneration system Повышение эффективности корпоративной социальной ответственности - The improvement of corporate social responsibility efficiency Восстановление жизнеспособности моногородов на территориях угольных бассейнов - The restoration of single-industry town viability on the territories of coal basins Совершенствование подготовки кадров - Staff training improvement Page 460

4 Совершенствование образовательных технологий в области охраны труда - The improvement of educational technologies in the field of occupational safety Повышение профессиональной компетентности персонала и руководителей - The improvement of staff and manager professional competence Восстановление преемственности профессий шахтеров - The recovery of miner profession succession Развитие материальной базы для реализации переподготовки кадров - The development of the material basis for the implementation of staff retraining Fig.1. The main trends of social and environmental sphere improvement concerning the activity of coal companies. As can be seen from Fig. 1, according to our view, in order to meet the interests of a coal company production and sustainable development, a necessary step shall be performed which is the restructuring of the organizational management structure. Thus, the introduction of technical and technological innovation is a mandatory element. This will improve the product quality, strengthen the market positions and increase a strategic competitive potential. The compliance with all these positions must contribute accordingly to an ultimate goal achievement of any business organization which is the profit growth. In accordance with the long-term program of Russian coal industry development the attention is drawn to the following routines for the period up to 2030: - The development of raw material base for coal industry and the rational use of subsoil; - The development of the productive capacity for existing facilities concerning the extraction and the processing of coal and the development of new coal deposits; - The provision of industrial and environmental safety, occupational safety in coal industry; - The development of labor relations and the corporate social responsibility of coal companies; - The improvement of vocational training system for coal industry. The remaining subprograms are designed to create the conditions for these goals achievement. We consider it is possible to establish the relationship between the individual more specific components of general trends. First of all, it is the relationship of government efforts and mining enterprises, in particular the legislative base and the direct and indirect financial assistance from the state, Fig Page 461

5 Элементы программы Обеспечение условий развития угольных компаний для возможной реализации инновационных проектов Модернизация угольного производства в целях повышения его эффективности Поэтапная реализация положений программы о развитии угольных компаний при участии государства Обеспечение безопасности при проектировании, строительстве и эксплуатации шахт Функции государства Совершенствование законодательной базы Развитие и использование различных форм господдержки Создание комфортной инвестиционной и социальной среды Формирование рынков и их влияния на развитие смежных ТЭК Мониторинг и контроль госслужб выполнения поставленных задач Функции угледобывающего предприятия Выполнение законов и указов Целевое использование государственной поддержки Выбор стратегии в соответствии с программой и возможности УП Структурные преобразования на УП Обеспечение стабиль-ного производства Выполнение задач социальной сферы Элементы программы - Program elements Обеспечение условий развития угольных компаний для возможной реализации инновационных проектов - The provision of coal company development conditions for the possible implementation of innovative projects Модернизация угольного производства в целях повышения его эффективности - Coal production modernization for its effectiveness increase Поэтапная реализация положений программы о развитии угольных компаний при участии государства - Phased implementation of coal company development program provisions with the participation of a state Обеспечение безопасности при проектировании, строительстве и эксплуатации шахт - Safety provision during design, construction and operation of mines Функции государства - State functions Совершенствование законодательной базы - Legal base improvement Развитие и использование различных форм господдержки - The development and the use of state support various forms Создание комфортной инвестиционной и социальной среды - The creation of a comfortable investment and social environment Формирование рынков и их влияния на развитие смежных ТЭК - The development of markets and their impact on the development of related FEC Page 462

6 Мониторинг и контроль госслужб выполнения поставленных задач - State service monitoring and control for set task performance Функции угледобывающего предприятия - Coal enterprise functions Выполнение законов и указов - The performance of laws and decrees Целевое использование государственной поддержки - Targeted use of a state support Выбор стратегии в соответствии с программой и возможности УП - A strategy selection in accordance with the program and CC possibilities Структурные преобразования на УП - Structural transformations at CC Обеспечение стабильного производства - Stable production provision Выполнение задач социальной сферы - The performance of social sphere tasks Fig. 2. Implementation scheme of coal company program elements on the basis of business integration processes. The main goal of the program is the implementation of competitive advantage potential at Russian coal companies within the implementation of a long-term energy policy and the transition to innovative socially oriented type of the country economic development. In this study, within the theoretical conceptual plan Eastern Donbass is determined and regarded as a depressive and an old industrial area - the sub-region of the Rostov region, which has the status of a frontier [S.N. Tsvetkova, 2010]. At that it is important to note that the geographical location of separate regions in terms of globalization process development and expansion transforms and makes credible the prospects of depression status overcoming, provided the effective use of the international division of labor. The depressive nature of Eastern Donbass does not mean only its difficult socio-economic situation, but also the fact that this region was a normally functioning one earlier, but due to a number of economical, political, social, environmental and other grounds the old conditions and the development stimuli ceased to operate there. The restructuring of the Eastern Donbass coal industry led to the decline of living standards in the region, the reduction of product output, the increase of unused enterprise capacity volume, the numerous shutdowns of mines and to an increased unemployment. The main reason of this situation is explained by the fact that most of the coal companies were the backbone ones, bringing about 80% of budget revenues. Besides, the majority of coal-mining region population worked in mines and quarries. The performed reforms created a high level of unemployment immediately. This was complicated by the conditions of Russian reality, as there was no possibility to provide jobs for miners due to the underdeveloped infrastructure of cities [Komissarov M.A., 2014]. The mines belonging to the Russian territory of the Eastern Donbass, have been operated for nearly half a century. The mining operations are carried out in rather harsh conditions at great depths with a high humidity and an elevated temperature. The main assets of mines are also severely depleted and the cost of its maintenance and repair grow constantly thus increasing the cost of coal and related products. However, scientists estimated that the value of balance reserves makes mln. tons and it gives the opportunity to talk about the prospects of Page 463

7 coal-mining company preservation in Rostov region [Stradanchenko SG, 2009]. These positive prospects may be represented by the presence of large explored areas; the presence of developed infrastructure in Rostov region; the favorable climatic and geopolitical location of coal mines; the uniqueness of Don anthracites (high content of calories, the specific calorific value of MJ/kg) and coking coals; the availability of trained personnel; great opportunities for the development of science and technology; the presence of a strong scientific base (a large number of higher education institutions) to ensure the performance of innovative activity [Razorenov U.I., Golik V.I., Kulikov, M.M., 2010]. It is necessary to create the positive conditions for a region competitiveness development. Moreover Rostov region today has sufficient internal resources and reserves to achieve the desired effective development horizons. It is necessary to make certain adjustments in the formation of an enterprise indicator competitiveness assessment with regard to their industry specifics within modern conditions of market relation perfection between mining companies. The assessment of competitiveness level among coal enterprises is a very hard work, because: - first of all, the competitiveness of a coal-mining company is influenced by a number of product quality indicators and the value of mined coal; - secondly, nowadays there are no international regulatory acts and the documents for the assessment of coal-mining enterprise competitiveness in Russia and in more developed countries; - thirdly, during the assessment of a coal-mining company financial attractiveness they do not pay a due attention to the investment potential and innovative activity. However, no single ministry or an agency, or a university or a research institution in Russia deal comprehensively with the problems of coal mining enterprise competitiveness. This led to Russia competitiveness decrease from 66 to 67th place in 2013 among 100 assessed countries [Miroschnik I.S., 2005]. Based on the complexity, the features and the importance of the competitiveness evaluation the principles and specific indicators of specific objects are stated in each specific case. Thus, the basis for the measuring of the Eastern Donbass mining company competitiveness can be on the method of evaluation of the analytical factors. The competitiveness of these enterprises should be assessed on the basis of competitiveness integral index, taking into account the importance of quantitative and qualitative assessments of a company effectiveness [Svinarev A.A., 2007]. A certain number of parameters can be selected as the valued areas of a coal company. The list of used parameters is determined according to the following conditions: - The number of estimated characteristics must be clearly limited in order to ensure the policy decision efficiency; - In the absence of generally accepted approaches to the competitiveness assessment, which require extensive research, it is proposed to use the criteria previously obtained by foreign and domestic scientists and economists. The selected parameters include a range of problems of an economic, social and environmental nature. Thus, the variables which ensure competitiveness are determined. The competitive advantages that determine the market positions of a coal-mining company are proposed to group as follows: the profitability of products (coal and other products); the value of mined Page 464

8 coal; the investment potential of a coal company; the damage to the environment caused by the activities of an enterprise; the innovation activity factor among companies [Dimitrov, I.L., 2006]. The profitability of coal companies is determined according to the following formula: R i1 n Ц C Ц C i R 100% (1) n n C C i1 i i j1 j1 j j j - where Ц i, C i the price and costs from coal mining, rub.; Ц, C the price and costs of other types of products manufactured by a company. - j j The value of coal produced without enrichment can be defined according to the following formula: n П ду γi Цдб i α б α i фi, (2) i1 where Ц дб the price of mined coal of this quality, rub.; αб i, α фi basic and actual coal quality indicators; γ i the production of the i-th fraction according to coal fineness; i extra charge or the penalty for the deviation from the basic quality according to the i-th quality characteristic, rub.; n the number of coal characteristics (content, calorific value, ash content, moisture content, etc.) The investment potential of a coal-mining enterprise is calculated as follows: П ип П П П Н, (3) пр двд потр where П пр balance sheet profit profit of an enterprise from product sales, rub.; П двд an enterprise profit from other activities, rub.; П потр part of the profit intended for consumption, rub.; Н tax payments, rub. Often investment costs are not single ones but the costs which are carried out for a long period, so their size shall be brought to the deposit operation start. Then we obtain the following formula: Page 465

9 П к Т о ti П ин 1 1 Е t t i o, (4) where П к the total potential of a coal company for the entire period of a deposit operation; Т о the year of a deposit operation beginning; i the number of mine operation years. The amount of damage caused to environment by a coal mining company is calculated as follows: n И Ф П э дi дi i1 У (5) n ср Ио i1 where И э environmental losses; ср И о - average industrial costs for environmental load exceeding; i types of pollutants; n the volume of emissions; Ф д i actual scale of environmental pollution; П д i maximum permissible extent of environmental pollution. The coefficient of a coal mining company innovation activity can be calculated using the following formula: n i1 ин n i1 З и К, (6) where С пр З и the costs of innovation performance, rub.; С пр the cost of enterprise product sales, rub. n the amount of implemented innovations. On the basis of the abovementioned studies and the developed evaluation criteria concerning the competitiveness of coal mining enterprises one may estimate the degree of competitive- Page 466

10 ness, develop the main trends of its improvement within the conditions of crisis and the entering of Russia in WTO and the mechanism of competitiveness level assessment of the enterprise level to determine its change in the near future. Results After a careful consideration and the evaluation of the present study goals and objectives, the author developed the method of discriminant analysis (MDA). MDA method is the statistical method, and it is used mainly for the classification and the implementation of forecasts in the objectives, where a dependent variable appears in a quality manner. Thus, the first step is to set some clear signs of a classification group. There are two or more original groups [Grice, J.S., Dugan, M.T., 2001; Altman, E.I., Marco, G., Varetto, F., 1994]. Some analysts refer to the discriminant analysis only in the case where the number of groups is greater than two ones. We proceeded from the assumption that this concept refers to the analysis of a multidimensional character. After the setting of groups and the data collection in groups, using MDA method, let's derive a linear combination of these characteristics, which will allow to establish the differences between the analyzed groups. If an object, such as a coal mining enterprise, has the features (financial ratios), which can be used quantitatively for all analyzed enterprises of the industry, you may define a set of discriminant factors using this method. At that the condition must be observed that these ratios are used as the actual relations and are the basis for the classification of coal mines into one of the classification groups. The initial sample consisted of 18 mines and enterprises with 9 companies in each of the two groups. An uncompetitive (problematic) group (group 1) is the manufacturers, which are recognized as bankrupt or shall be closed during the period from 2005 to The studies showed that this group is not a homogeneous one completely (due to the specific activity of this industry and the sizes of enterprises). Thus, a careful selection of competitive and noncompetitive enterprises was carried out. Group 2 contains the list of coal mining companies, which were selected on a stratified random basis by pairwise sampling (under the conditions of analyzed object large scatter). We used the data obtained from official sources, official websites and statistical compilations, as well from selected annual reports for an initial test sample. Due to the large number of variables influencing the competitiveness of indicator evaluation, the calculation was performed taking into account the need of a qualitative and a quantitative evaluation. The variables were divided into five main indicators presented above; the coefficients were selected on the basis of their popularity in literature and an author's opinion, and also their research potential is taken into account, and there are a few "new" author indicators used in this analysis. 14 variables were selected from the existing list of enterprises, five were taken as basic ones, necessary for the evaluation of competitiveness. This allowed to improve the dimensional, traditional analysis, as this process is an iterative one, and there are no significant negative effects concerning the optimal nature of the obtained discriminant function [Altman, E.I., Marco, G., Varetto, F., 1994; Zmijewski, M.E., 1984]. After the performed calculations the discriminant function is the following one: f c = 0,3962*n 1 + 2,64*n 2 + 0,075*n 3 + 1,19*n 4 +0*n 5 Page 467

11 (Weighted averages for each N-group of indicators) in 8 years where n 1 the profitability of coal mine production, n 2 - the value of mining coal, n 3 - the investment potential of coal mining enterprises, n 4 - the environmental damage caused by coal mining enterprises, n 5 - innovative activity coefficient, f c - the integral index of competitiveness assessment. It should be noted that the proposed model does not contain constants. This is associated with a particular software in use. The indicator of production profitability for coal mines is often found in the studies of sectoral issues, and it is the main parameter for company asset evaluation in relation to the total cost of produced primary and by-products. Of all the types of margins they estimate the most effective one at this stage. The average weighted value shows the corresponding specification and the shape for each of five independent variables (Table 1). Table 1.Variables and significance criteria of coal mine competitiveness 1 Variable Competitive group average value Average value of noncompetitive group Average weighted value of an indicator n1-1,47-31,77-16,62 n2 2,91 2,7 2,81 n3 114,04-101,2 6,42 n4 1,295 1,77 1,24 n5 0, , , The degree of competitiveness is recognized as "very large", provided that the value of the integral function is equal to or more than 13.52; it is recognized as "significant", provided that the value of the integral function will be from ; it is recognized as "sufficient", provided that the value of the integral function will be ; it is recognized as "medium" provided that the value of the integral function makes ; it is recognized as "low" under the condition that the integral function value will be ; it is recognized as "negligibly low" under the condition that the integral value of the function will be less than 1.8. On the basis of research and developed quantitative and qualitative indicators that influence the competitiveness of coal mines, one can set the degree of mine competitiveness and determine the period of competitiveness loss for the next 10 years, offering the enterprise development strategies improving or maintaining their competitiveness. Table 2 shows the calculation of the competitiveness function integral value. Table 2.Integral function of mining enterprise competitiveness Compiled by author (see the Annex) Page 468

12 "Almaznaya" mine 17,57 4,64 2,92 33,05 15,42-0,90 1,53 1,07 "Gukovskaya" mine -6,21-4,30-3,34 1,59 0,00 0,00 0,00 0,00 "Dalnaya" mine -85,59-18,84-9,50 0,00-3,05-3,15 4,04 7,00 "Zamchalovskaya" mine -13,42-8,13-12,04-8,48-14,04-21,05-29,83-22,12 «Zapadnaya» mine 9,99 11,09 12,08 12,37 13,35 16,01 9,11 14,61 «Obukhovskaya» mine 8,32 13,08 11,93 12,12 9,56 8,31 9,21 11,21 "Rostovskaya" mine 13,51 13,77 15,76 9,65 8,87 10,59 11,02 13,38 Mine ,09-6,98-7,50-2,12-4,24-2,48-2,14 0,53 "Sadkinskaya" mine 5,86 9,32 6,97 8,12 3,04 0,08 1,70 4,15 «Sherlovskaya- Naklonnaya» mine -3,50-2,95-3,26-3,26-7,08-2,91-3,64-2,66 «Obukhovskaya 1» mine 4,03 3,89 5,93 7,88 5,91 6,19 8,46 8,78 "Kadamovskaya" mine 4,86 5,12 7,92 5,95 4,18 6,47 7,21 9,45 Open Joint Stock Company «Vostochnaya mine» -35,01-38,15-39,40-48,33-59,90-87,88-94,86 0,00 Open Joint Stock Company "Anthracite mine" -14,40-20,42-26,18-38,06-64,98-78,97-72,21-62,17 Limited Liability Company "Rostov Coal Company" -33,09-34,28-35,03-0,12-13,26-23,13 31,95-32,03 Let perform the grouping of coal mines according to developed groups (Table. 3). Table 3.Classification of Eastern Donbass mines in 2012 Competitive ness level Enterprises Page 469

13 Very low "Gukovskaya" mine, "Zamchalovskaya" mine, Mine 410, «Sherlovskaya- Naklonnaya» mine, Open Joint Stock Company «Vostochnaya mine», Open Joint Stock Company "Anthracite mine", Limited Liability Company "Rostov Coal Company" Low - Averag e Suffici ent Consid erable Rather consid erable "Dalnaya" mine, "Sadkinskaya" mine "Almaznaya" mine, «Obukhovskaya» mine, «Obukhovskaya 1» mine, "Kadamovskaya" mine "Rostovskaya" mine «Zapadnaya» mine Calculations show that during the analyzed period the number of mines referred to the competitiveness degree "negligibly low" changed slightly, the surge in this group occurred in 2009 within the terms of production significant decline. Besides, the share of enterprises with such an estimate makes 53.33% within the general sampling structure. At that the group "Low", "Sufficient", "Considerable", "Very considerable" is almost unchanged in the dynamics, although there is a slight tendency of mine competitiveness increase. Based on the above calculations using the method of enterprise competitiveness assessment at the preliminary calculation of the basic factors we determine the degree of Eastern Donbass mine competitiveness operating on the territory of the Rostov region as of (Figure 3.). Page 470

14 Fig. 3. The dynamics of the integral competitiveness index of East Donbass coal mining enterprises for the period of The table 3 shows that according to the number of companies under consideration "Very low" degree of competitiveness is observed among 53.33% from the total number of companies with the term of competitiveness reduction less than 1 year, not a single enterprise is represented by "Low" level, the "average" level is represented by 13.33% of enterprises with the period of competitiveness decrease no more than 3 years, a "sufficient" level is represented by 26.67% of mines with the loss of competitiveness for a period of no more than 5 years, a "significant" degree is represented by 6.67 % of companies with the loss of competitiveness for a period of no more than 7 years and "very considerable" degree is attributed to 6.67% of coal mining companies with the loss of competitiveness for not exceeding 10 years. After the calculations let's propose the strategies for mining activities to improve their performance and the competitiveness of their mines. At that a set of actions should be developed which shall be performed by a coal mining enterprise to maintain the level of competitiveness and the reduction of losses. The strategy for the conservation of unprofitable mines is recommended for mines, referred to the "very low" degree of competitiveness and in accordance with the developed system of an enterprise competitiveness reduction period. The survival strategy is recommended to maintain the existing mines for the mines classified as the mines with "low" degree of competitiveness and in accordance with the developed system of enterprise competitiveness reduction period. Page 471

15 The selective reduction strategy for a rapid profitability provision is recommended for the mines, referred to the "average" degree of competitiveness and in accordance with the developed system of enterprise competitiveness reduction period. The strategy of horizontal integration and cost reduction is recommended for the mines classified to the "sufficient" degree of competitiveness and in accordance with the developed system of enterprise competitiveness reduction period. The price leadership strategy is recommended for the mines classified to the "significant" degree of competitiveness and in accordance with the developed system of enterprise competitiveness reduction period. It is advisable to use innovative strategies for the mines classified to the "very significant" degree of competitiveness and in accordance with the developed system of enterprise competitiveness reduction period. Discussion The study of operation practice for the coal mining industry enterprises promoted the development of a set of indicators to measure the competitiveness of a coal enterprise; the reasons were determined according to which the quality of coal may be considered as one of the coal industry performance indicators; The specific features of the coal industry enterprise investment activity are revealed; A number of measures is proposed to reduce an anthropogenic impact on the environment; The implementation of innovation strategy trends are proposed. A comprehensive integrated indicator is developed during the study, taking into account the unique characteristics of business to determine a set of variables that are effective indicators of coal-mining enterprise competitiveness estimation; based on the method of discriminant analysis (MDA) the discriminant function is developed to assess the level of coal enterprise competitiveness and the variations of this level over time; the final list of variables was developed necessary for competitiveness evaluation; the algorithm for the evaluation of coal enterprise competitiveness and the periods of its change are proposed; the mechanism of coal mine evaluation competitiveness is developed. The result of the Eastern Donbass coal mining company competitiveness analysis is the evaluation of competitiveness level performance; East Donbass mines are grouped in terms of profitability for the last 8 years; The dynamics of the indicator "carbon value" is presented; The analysis of the investment potential of the Eastern Donbass enterprises and the calculation of their innovation activity factor are performed; The dynamics of the integral index concerning the East Donbass coal mining enterprise competitiveness of East Donbass coal mining enterprises is analyzed; The coal mining enterprises are grouped according to the degree of competitiveness and the development strategies are proposed for each selected group. Summary The result of research shows that the degree of Rostov region coal-mining enterprise competitiveness can be regarded as unsatisfactory in general. Most mines have the problems with profitability, investment potential and with innovative potential (note that the first investments in innovative technologies of this industry appeared in 2009). The dynamics of investments in innovations, both from businesses and from private investors and a state remains a low one. It Page 472

16 reduces the competitiveness of enterprises and their investment appeal for domestic and foreign investors. Under the developing crisis conditions in the European countries and the stagnation of the country economy, if the coal-mining enterprises do not pay a particular attention to the abovementioned issues, to the deterioration of conditions for production activity, it could lead to the bankruptcy of enterprises and the deterioration of the economic situation in Rostov region, as well as to the closure of single-industry towns, as these enterprises are the townforming ones. Acknowledgement The work results were obtained under the support of the project number 2873 "Theory, methods and the technology of professional education in the areas of training concerning the relevant priority areas of modernization and technological development of the Russian economy" implemented within the basic part of the state task number 2016/143 Page 473

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