Vostsibugol-Khakassia LLC, a subsidiary of Vostsibugol Company, have won the rights to explore and develope the North-Western Kirbinsky area of the Beiskoye coal deposit in the Republic of Khakassia, Russia.

The company paid RUR165 million for the license through a Government bidding process. North-Western Kirbinsky has 170 mt of commercial A+B+C1 of high-calorie, low ash-content coal reserves. KVSU plans to develop an open-pit mine on the North-Western Kirbinsky project. The mine will have 4 mt per annum capacity, which can be extended up to 7 mt per annum. It is predicted that the key consumers of the Beiskoye coal are likely to be energy generation and utility companies from Siberia as well as from Asia-Pacific region.

KVSU plan to complete exploration activity, development of mine design and have it approved by relevant authorities in the next three years. Production will start in 2018-2019. Apart from mining facilities, the company plans to build transmission facilities to receive energy from local grids, and transport infrastructure to transport the mined coal. A road to connect the mine with the nearby railway station will be built first; then a rail line from the Beiskiye Kopi station to the Podsiny station (ca. 80 km) might also be built as mining output grows.

Investment in the development of the North-Western Kirbinsky will total more than RUR11 billion, according to preliminary estimates. The project will create more than 1,000 new jobs in Khakassia, and the company will pay about RUR400 million in annual regional taxes after the project reaches its full capacity. Additionally, KVSU will actively participate in social development programs and social-economic development programs in the Republic of Khakassia.

“We are delighted to strengthen our coal business by acquiring a new license for high-quality steaming coal in Siberia, in close proximity to Asia Pacific. We believe that Beiskoye coals can be used to meet the growing energy demand in the region”, commented First Deputy CEO of En+ Group Maxim Sokov.
“Our top strategic priority is broadening of our resource base by adding high quality coal deposits to it. I have no doubt that the expertise and competences of Vostsibugol, the Eastern Siberia’s coal mining leader, will help us implement this new project in compliance with the sternest standards of both economic efficiency and environmental protection”, said KVSU CEO Evgeny Masternak.