The Russian mining and steel producing group Mechel has announced that it has signed a cooperation agreement with Federal Grid Company of Unified Energy System (FGC UES) and RusHydro, regulating the parties' cooperation while implementing investment projects on the construction of the Nizhne-Bureisk hydro power plant and the Elga coal mining complex.
According to this agreement, RusHydro will construct the Nizhne-Bureisk hydro power plant as well as develop power generation schemes, while Mechel will commission power receivers for the Elga coal mining complex, and FGC UES in its turn will construct external power supply facilities for the Elga coal mining complex as well as provide the power supply schemes for the Nizhne-Bureisk hydro power plant.
In January 2010, FGC UES, Mechel and System Operator UES approved the external power supply scheme for the Elga coal complex. The construction of the external power supply facilities will start in 2011 and have two stages - the first one to be completed by 2013, while the second one is to be finished by 2015.
The construction of power facilities for the Elga coal mining complex is included in the draft of the FGC UES investment program for 2010-2014, which is submitted for approval to the Ministry of Energy of the Russian Federation.
The Elga coal deposit is the largest coking coal deposit in Russia, with estimated coal reserves amounting to 2.2 billion mt.