A London-based bank has provided a loan worth $70 million (£43.5m) for a mining group in Ukraine.

Coal Energy SA will use the cash from the European Bank for Reconstruction and Development (EBRD) to improve the efficiency and safety of its operations as part of its overall “modernisation programme”.

EBRD will give the money in two equal parts, the first of which will finance the waste coal recycling and coal processing operations of the firm. The second half will be aimed at the development of recycling programmes, health and safety and energy efficiency measures.

Viktor Vyshnevetskyy, Chairman of the Board of Directors of Coal Energy said: “The raising of financing from EBRD is the next step of the Group’s long-term strategy, aimed at increasing operating efficiency of production and growth of our business. Our joint projects carried out with EBRD on underground coal mining and coal beneficiation will allow the Group to reduce costs, including financial costs and increase production of thermal coal which will meet increasing demand from the energy sector.”

Coal Energy Group is the third largest private coal producer in Ukraine.