Russian pig iron and coking coal group Koks Group has announced that in 2011 it will invest a total of Ruble 3.2 billion (about $107.4 million) to continue the construction on schedule of its Butovskaya and S.D. Tikhov coal mines.
Specifically, for the construction of its Butovskaya coal mine, in 2011 Koks Group will invest Ruble 2 billion (about $67.1 million). The mine is projected to reach its planned capacity of 1.5 million mt of coking coal per year in two stages to be commissioned in 2012 and 2014. The preliminary balance-sheet reserves of the Butovskaya mine total 73.324 million mt of coal. The time period for processing these coal reserves is 30 years.
Meanwhile, for construction of the S.D. Tikhov mine, Koks Group plans an investment of Ruble 1.2 billion (about $40.3 million) in 2011. The mine's planned capacity of 3 million mt of coking coal per year is expected to be reached in three stages to be commissioned in 2014, 2015 and 2016. According to the license agreement, preliminary balance-sheet reserves at the S.D. Tikhov mine total 109 million mt of coal.
"Commissioning mines over the next six years will allow Koks Group to further strengthen its position in coking coal extraction and coke production," reads the company's statement.