Russia's coal
mining company Belon, which is part of the Russian steelmaking group Magnitogorsk Iron and Steel Works (
MMK), has announced that the cost of its investment program for 2011 will amount to Ruble 4.832 billion (about $161 million), excluding VAT.
Accordingly, the main funds will be directed towards the construction of the mine operations of its coal
mining enterprises, and for the acquisition of new
mining equipment, which will ensure timely
mining of coal and production of
coking coal, a strategically important raw material for
MMK.
Belon plans to direct the largest amount of investment in 2011, i.e., Ruble 2.143 billion (about $71.4 million), towards the development of its Kostromovskaya coal mine, which currently produces about 40 percent of Belon's total
coking coal output.