OPK to develop Elegesta coal deposit with Chinese partners

Thursday, 29 November 2007 14:10:44 (GMT+3)   |  
       

The Russian United Industrial Corporation (OPK) has announced its signature of a partnership agreement with China-based Jinan Coal Industry Design and Research Institute and China National Machinery and Equipment Import & Export Corporation (Machimpex) for the combined development of the Elegesta coking coal deposit, located in the Russian Tyva Republic.

According to the agreement, the Chinese side will be in charge of the new technology for the deposit's development. Both of the Chinese companies are part of the Genertec Group which has large experience in the construction of new mines both in China and abroad.

The license to develop the Elegesta coking coal deposit, which holds about 894.8 million metric tons of coking coal (mostly hard coking coal from which high quality metcoke is produced), belongs to OPK's subsidiary Eniseisk Industrial Company (EPK).

As an initial plan for the Elegesta deposit, EPK proposes to establish a facility with a production capacity of up to 15 million metric tons a year.

The combined development of the deposit seems to be a win-win situation for both sides. On the one hand, OPK will get access to technology and know-how. On the other hand, China, which is a net importer of coking coal, will get access to Russian coking coal, especially now at a time of increased scarcity of coking coal. Furthermore, the rising freight rates make it less economically advantageous to import coking coal from far-away regions.


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