Oct. 26 – China will issue a US$6 billion credit line to Russian coal producers for the development of greenfield coal deposits, Deputy Energy Minister Anatoly Yanovsky stated on Monday.
“There will be a credit line opened and those companies that are interested in shipping coal to China … will reach an agreement,” Yanovsky said.
The funds would be used to invest in field development and the surrounding infrastructure.
Part of the credit would be used to develop the Elegest coking coal deposit in the East Siberian Tuva Republic which has reserves of 946 million tons. The funds will also go towards several projects to develop untapped coal reserves on the Pacific island of Sakhalin.
Russian steel-maker Evraz said on Oct 20 it won the rights to a second coking coal deposit in Tuva Republic with a US$28 million bid.
The Eastern Field, which borders the Mezhegei field Evraz acquired earlier this year, has an estimated reserves of more than 550 million tons and mineable reserves of more than 100 million tons.
Mine construction will begin in 2017 and full production capacity is expected to be achieved in 2021.
The development of coal deposits in the region is dependent on the construction of a 418 kilometer railway between Kyzyl and Kuragino, carried out on a public-private partnership base, and which is planned to be finished in 2014.
Russia, among the world’s largest coal miners and exporters, aims to supply the Asian market with mining products from Siberia and the Far East.