The development strategy of Ukraine's coal industry according to the principles of industrial organization

R. Coase classified the industrial structure according to three criteria, one of which is firm's size. J. Bain introduced the concept of minimum effective scale (MES), which determines the size and number of firms which can operate effectively in the market. Currently, these subjects have become again actual not only in Ukrainian coal industry, but also, for example, in North America where the coal industry in a state of deep restructuring. MES concept is based on the assumption that the production function and the cost structure of all firms of the same industry are identical. But it is not typical for the coal industry. The article discusses the peculiarities relating to MES of mines with different geological conditions. The research of singlefactor production functions (with multiresourse equivalent as an argument) of mines confirms the fact that companies operating in favorable conditions have MES significantly smaller than their production capacity. Minimum effective scale of mines with severe operating conditions matches and even exceeds the specified parameter. Due to the high conditionally-fixed costs, the mines of heavy type should be loaded as much as possible. The experienceof Germany and the leading private mines of Ukraine confirms the correctness of these conclusions. Unlike them, the state Ukrainian mines are operating in uniquely conditions. Due to the chronic lack of investment resources, in most of them for a long time, the degree of development of productive capacity does not exceed 10%. An important result of this article is justification of necessity of changing the strategy of development of state-owned mines: the concentration of mining based on the accumulation of budget subsidies for modernization of promising enterprises and conservation of those objects for maintaining of which there is no financial possibilities.