Establishing the approach to sustainability assessment of a coal mining company’s activity

High competition in the existing coal mining market has set up new landmarks in companies’ performance. Maintaining steady development of a coal mining business is the main task at all managerial levels and is supported by high sustainability level. A company’s ability to preserve stability is one of the key factors revealing stable development of a coal mining business. The need for establishing a system of a company’s sustainability indicators is determined by the necessity to estimate the company’s performance more accurately and in accordance with the objectives set. The authors of the article suggest a new complex approach to estimating a coal mining company’s sustainability. It is based on preserving stable operation under the influence of outer and inner risks. The authors explain the impact of various technical and economic indexes on a company’s activity, suggest formulas for calculating the assessment index – stability coefficient, define the limits for three areas by the value of the stability coefficient and the degree of risk elimination, calculate the sustainability of the company’s operation basing on the indicators’ actual values and the actions taken to eliminate risks per year. The approach suggested can become one of universal tools for analysis and assessment of current operation as well as for the medium-term planning. It can also be used in any coal mining company. The novelty of the approach is determined by the combination of traditional financial and economic analysis and the approach based on application of risk management system.

sustainability, risk managment, indictors of sustainability assessment, actions taken on risks, stability areas

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