Organised by Austrade and coordinated out of the agency’s Moscow and Warsaw offices, delegates on the trip were from Snowden Group, Supavac, Air Liquide, Mine Site Technologies, Applied Research of Australia, Highlands Mining, David Brown Gear Systems and Linc Energy.

The trip included briefings in Moscow with local experts, government, the European Bank for Reconstruction and Development, and some of Russia’s largest coal companies, including SUEK, Evraz and Mechel. The delegates also visited Russia’s leading coal research institute.

A transfer to the Ukraine connected the delegates with leading experts from the Ukraine coal industry and top mining government officials.

The last country visited was Poland, involving briefings with legal and business advisory organisations on the country’s business environment and coal industry, the Polish National Geological Institute and a briefing from the Ministry of Economy’s coal department in Warsaw.

In Katowice, delegates held a seminar attended by coal companies, including four of the big five coal companies – Kaotowicki Holding Weglowy, Kompania, Southern Coal Group and Poland's only privatised coal company Bogdanka – as well as industry suppliers, research organisations and other key agencies associated with mining.

The trip ended with a 720m deep site visit to Poland’s Katowice mine.

Austrade’s Moscow-based senior trade commissioner Dan Tebbutt told International Longwall News that Russia, Ukraine and Poland were the three most important coal markets of emerging Europe.

“All three have rich traditions in coal mining but also face significant challenges in modernising their mining infrastructure and practices, boosting efficiency, improving the quality of final products and improving safety, particularly in underground mines,” Tebbutt said.

“Each country has made substantial progress in these areas, but there is a recognition of the need for ongoing investment in modern equipment, services and practices to approach international standards best practice.

“Leading companies in the region are aware of Australia's leadership position in coal mining. Some, such as SUEK, Russia's largest coal company, have regularly visited Australia in recent years to seek out new technologies and services that have made a major contribution to the company's rapid evolution.”

Snowden Group coal general manager Malcolm Scott noted that while Russia, Ukraine and Poland all had varying degrees of development within their coal industry, they had one constant.

“Coal mining people talk a language that transgresses the language barrier,” he said.

Scott said the level of technology, safety and productivity in the different countries was mixed with Ukraine having challenging deep underground mines with older equipment/technology, while Poland had a strong technology and equipment sector supporting the coal mines and operating well in some challenging conditions.

“Both these countries are going into a period of looking to privatise their mines from the current state-owned operations they presently operate under. This will result in further rationalisation of the manning and employment numbers which have already been through large cuts but still have a way to go to match the efficient mines of Australia and the USA,” Scott said.

“Russia has already gone through a large privatisation process resulting in the formation of some very large efficient coal mining companies. These companies are eager to upgrade to the latest equipment technology and safety systems.”

Scott said Snowden’s expertise was well received with a couple of big Russian companies interested in undertaking work with the consultant.

“The number of international mining consulting companies operating in all three of these countries can be counted on one hand so they are very keen to see new blood and some real competition in this advance consulting services sector,” he said.

“In addition, with the privatisation process in both Poland and the Ukraine about to gain momentum, the reporting on reserves and resources to international standards is an area on which they are focusing their attention.”

Snowden is lucky enough to have a number of sister companies already operating in the countries visited which will provide them with a good platform to gain access to the markets through the pooling of resources and knowledge.

“Initially Snowden will service these areas from existing offices outside these areas but it makes imminent sense that at some point in time a Snowden office may appear in this region.”

Tebbutt agreed there were plenty of opportunities for Australian suppliers with world-class technologies even though the current level of awareness and interaction between Australia and Eastern European coal-producing countries was relatively low.

“Emerging European coal markets have a great thirst for Australian technology, innovation and know-how,” Tebbutt said.

He said companies in Russia, Poland and Ukraine were eager to learn about break-through technologies and services used in Australia.

“Up-to-date information, the current status of the industry heard directly from the heads of coal and mining companies, will enable Australian companies to make informed decisions on where they allocate resources to pursue business opportunities in these markets.”

Delegate and Applied Research of Australia’s Matthew Boot said he was impressed with the high level of coal company and government people the delegation was able to meet over the trip.

He said all three countries received the delegation with open arms and welcomed Australian mining know-how.

He said AROA had plenty of opportunities to explore following the trip and would work with Austrade to assess all export markets for its fibreglass bolts to prioritise geographic targets.

Tebbutt said the first step to enter the Eastern European markets was for Australian companies to engage with the large base of potential customers.

“Engagement could come from participation in local trade shows, Austrade-led trade missions or an individual market visit program. Austrade's offices in Moscow, Warsaw and Vladivostok have strong experience working with exporters in the coal sector backed by good contacts with local buyers, who are generally very interested in engagement with Australia,” he said.

“Business in these countries is now always straightforward, as in other emerging markets, but with the support of Austrade's in-market teams, you can significantly reduce the cost and risk involved in entering these highly prospective markets.”

For another delegate, of the three countries visited, Poland had the most advanced mining technology and was open to foreign technology to help tackle challenging condition in deep mines of 720m depth plus.

The delegate said Ukraine mines were the least developed and in Australian terms thin seams of 800mm to 1000mm thick were being tackled.

“All three countries are trying very hard to improve, but it is difficult given the very significant number of miners underground, the difficult deep/seismic, gassy, cold and thin seams conditions, as well as the remote locations,” the delegate said.

He added that while Australian technology was well received during the trip, the countries faced a political hurdle in that innovation tended to be coupled with a reduced workforce.

He said the countries needed to place emphasis on using technology to make each person more productive, rather than replacing people.

Like the other suppliers on the Austrade mission, the delegate saw plenty of opportunities for Australian suppliers in time, but penetration of the markets would require further research and market evaluation to decide the best approach – either through a license agreement with a local manufacturer/provider, a standard distributor model, or a direct model.

Being the first mission of its type, Austrade's Poland-based senior trade commissioner Paul Sanda felt it “really broke new ground in showcasing the innovative technologies and services Australia has to offer to emerging markets in Europe".

"Given the synergies between Australia and the coal-producing economies of Russia, Ukraine and Poland, and the potential for increased drive towards modernisation, and the likelihood of privatisation for many of the coal companies in Eastern Europe, we expect that Australia's expertise, innovative technologies and experience will be welcomed by the industry and lead to good commercial cooperation in the future," Sanda told International Longwall News.

"Russian and Polish companies are already actively engaged with Australian industry, two examples are SUEK, Russia's largest coal company which regularly looks to Australia for new technologies, and KOPEX, one of Poland's largest equipment and technology companies servicing the coal industry with existing investments in Australian firms.

“This mission was an opportunity to engage with the movers and shakers in overseas markets to deliver a strong message that Australia welcomes increased trade and investment cooperation as well as identify specific commercial opportunities for the Australian participants."