Russian sources report that the stakes owned by the Yakutia government and by Russian Railways in the Yakutugol and Elgaugol coal companies - both of which are located in the Republic of Sakha Yakutia (Yakutia) - can be auctioned as early as August 2007. The starting price for these two stakes, which will be auctioned in a single lot, is estimated at Ruble 52.2 billion ($2.04 billion).
Yakutugol holds the rights to develop the Nerungrinskoe coal deposit with an annual mining capacity of 8.5 million metric tons of coal, five million metric tons of which is coking coal. The shareholders in the company are Mechel with 25 percent of shares and the Yakutia government with 75 percent minus one share.
On the other hand, Elgaugul holds the license to develop the Elga coal deposit, which has 2.2 billion metric tons of coal reserves. The shareholders of the company include Russian Railways with a 29.5 percent stake, the Yakutia government with a 39.36 percent stake, VSKK with a 28.79 percent stake and Yakutugol with a 2.35 percent stake.