13.6 C
Sunday, May 26, 2024
EnergyMaxim Barskiy Sibanthracite: role in the evolution of a coal-mining giant

Maxim Barskiy Sibanthracite: role in the evolution of a coal-mining giant

The metallurgical coal maker rose from an ordinary entrepreneur to an international leader. Maxim Barskiy, an executive known for his projects in the mining industry, proposed a strategy to boost production output and export. The manager helped Sibanthracite become a leading player in the global market.

Maxim Barskiy. Sibanthracite: Development concept

Barskiy Maxim Gennadievich played a key role in increasing the capitalization of several oil companies. He started his career in the investment company Troika Dialog, and in ten years he took charge of the TNK-BP company, tripling its market value.

The manager met Dmitry Bosov, the owner of Sibanthracite, in 1999. In 2001, the partners got involved in the development of the Internet provider Cityline. Maxim Gennadievich developed and implemented a strategy for a large-scale business expansion into regional markets.

Later, at Bosov’s request, Maxim Barskiy helped Vostok Oil to overcome and recover from the crisis. The top executive also completed the oil company’s rebranding and streamlined corporate processes. As a result, the value of the oil company skyrocketed from $60 million to $4.5 billion, while the manager became known in the investment community as a skilled strategist.

Taking note of Barskiy’s ability to achieve spectacular business results, in 2018 Bosov invited him to become the operations manager at Sibanthracite company. By that time, the firm had established itself as a major player in the global coal market.

Barskiy Maxim said in one of his interviews that he was tasked with scaling up the coal mining company. The top executive was expected to help Sibanthracite become a leading global company. Achieving this ambitious goal required a new management approach

Sibanthracite: Journey from scattered assets to a unified group

Maxim Gennadievich Barskiy conducted a rigorous analysis of the company’s operational activities. Based on the data collected, he developed a multi-phase development strategy that enabled the metallurgical coal producer to reduce production costs, expand distribution channels, and maximize revenue.

The manager noticed that two out of three Sibanthracite’s coal-mining entities were developing neighboring mines in Novosibirsk Region. In addition, both Siberian Anthracite JSC and Eastern Mine LLC extracted the same type of coal, anthracite. This led to competition between the two, resulting in lower-end product prices.

That’s why the first step in implementing the strategy was the consolidation of coal-mining assets. Under the leadership of an experienced top executive, the group integrated several regional companies as well as Kiyzassky Mine LLC, a semi-anthracite coal producer in Kuzbass Region.

At the same time, the strongest demand in the global market was for Ultra High Grade (UHG) anthracite. That’s why it is possible to offer customers a full variety of coal types by entering the market with a single product. With the consolidation complete, Sibanthracite was able to capitalize on this opportunity.

After becoming CEO, Barskiy proposed moving to the next phase of the strategy: cutting out the middleman. The group’s representatives held several meetings with the heads of leading companies in the global metallurgical industry. This overture enabled the company to do business directly with its international partners, removing traders from the distribution chain.

Sibanthracite was able to secure leading positions in the Indian and Chinese markets after the termination of the long-standing cooperation with Carbo One, the country’s largest coal trader. Barskiy spearheaded efforts to fine-tune the technological processes needed to create high-grade coal that was in high demand in both countries.

As a result, the coal giant has dramatically increased the company’s profitability and investment appeal.

Sibanthracite: Expansion into new markets

Under the leadership of Maxim Barskiy, Sibanthracite continued to grow the its asset portfolio. The company obtained a license for a second mining site in the Kuzbass region, securing a resource base for the extraction of more than 20 million tons of semi-anthracite coal. In 2019, it registered a base “Lesnaya” which specialized in refining power plant coal.

Production growth required market expansion into new regions. To break into new markets and buttress its already established business positions, the company began to implement the third phase of Barskiy’s strategy: increasing logistical accessibility.

Sibanthracite signed a long-term contract with the Black Sea port of Taman, which emerged as a base for freighters transporting coal to the Asia-Pacific region (APR), with China being the largest buyer in this part of the world. Strategic cooperation with the port of Taman enabled the company to ship cargo in large volumes, which increased the turnover.

In addition, Barskiy also propelled the effort to start exporting goods via the Northern Sea Route. The NKT’s Yug-2 terminal at the port of Ust-Luga emerged as a hub for uninterrupted deliveries of metallurgical coal to South Korea, offering new opportunities for cooperation with other APR countries.

By tapping into the potential of the new sea routes, the company became a leading supplier of metallurgical coal to India and China.

The fourth stage of Barskiy’s strategic plan was to reduce the cost price of the company’s products. The group assumed control over managing production processes in the Kuzbass region, which significantly reduced costs. Later, other companies in the industry followed suit.

Combined, four elements of the strategic plan put forward by Barskiy transformed Sibanthracite into a key player in the global market.

Subscribe to our newsletter
Business Manchester will use the information you provide on this form to be in touch with you and to provide updates and marketing.
Don't miss

More News