Evraz Group launches construction of new coking coal mine

Russian mining and steel producing company Evraz Group announced on August 18 that it has launched the construction of a new coking coal mine Yerunakovskaya-VIII within its existing coal mining division Yuzhkuzbassugol in the Kemerovo region of Russia. The approximate investment for the project will be about $590 million, while production operations are planned to start by mid-2013. By the end of 2014, the mine is expected to reach a total production capacity of 2 million mt of raw coking coal per year. Mine development will start from the Yerunakovskiy-VIII deposit with the potential for further expansion into the Yerunakovskiy-Vostochnyi deposit. Joint development of the two deposits will provide long-term stable mining operations and a guaranteed supply of high quality hard coking coal. The estimated reserves of the new areas being developed are in excess of 85 million mt. This project is in line with Evraz’s strategy to further develop its coal mining operations. Construction of the new mine will increase the level of vertical integration, providing Evraz’s steelmaking facilities with high quality coking coal.