Elgaugol

The Elginsky Coal Complex (EUK) includes a group of companies for the extraction, enrichment, transportation and sale of high-quality coking coal brands "ZH," "GZ," "GZhO."

Performance indicators

2023: Production growth of 30% to 26 million tonnes

Production of coking coal of the Elgaugol holding in 2023 amounted to 26 million tons, which is 30% more than in 2022 (20 million tons). The company released such data at the end of January 2024.

According to the press service, which is referred to by the TASS agency, in 2023 four enrichment plants were launched at the Elginsky coal project, the same amount will be introduced in 2024, which will allow the company to increase its annual concentrate production capacity to 45 million tons.

Elgaugol coking coal production in 2023 amounted to 26 million tons

Elgaugol also retains its plans to launch the second phase of the project in 2024 in order to increase production from 30 million tons per year to 45 million tons per year. Investments in the development of the project in the period from 2020 to 2023 amounted to 220 billion rubles.

The company notes that the production plan in 2023 at the Sugodinsko-Ogodzhinskoye field in the Amur Region amounted to 1.2 million tons of coal, in the future the volume will be increased to 20 million tons.

The Elginsky coal project includes the largest coking coal deposit in Russia and one of the largest coking coal deposits in the world - Elginsky. The reserves of the field are estimated at about 2.2 billion tons according to JORC standards. To export coking coal, a private railway is being laid to the Sea of ​ ​ Okhotsk, its construction is planned to be completed in 2025-2026.

Total investments in the development of the Elginsky coal complex are estimated at 130 billion rubles. The project involves the expansion of the carrying capacity of the Elga-Ulak railway to 30 million tons, the construction of transshipment facilities in the water area of ​ ​ the port of Vanino, as well as the construction of a mining and processing plant, the processing capacity of which at the first stage will be 32 million tons of coal.^[1]

History

2022: Rostec withdraws from joint projects with Albert Avdolyan after sanctions

In April 2022, it became known that Rostec was withdrawing from joint projects with Albert Avdolyan after the introduction of Western sanctions against the state corporation. In particular, Rostec has agreed to sell 5% of the Elginsky coal complex in Yakutia to the A-Property businessman's group of companies.

Avdolyan's company will also buy 25% of the Ogodzhinsky coal project in the Amur Region from Rostec, a representative of A-Property said. In addition, Rostec will sell 25% of the port of Vera in Primorye, through which coal is exported from the Elginsky field, RBC reports. This share will be bought by Avdolyan's partner Alexander Isaev, the general director of Elga Ugol, which manages the businessman's coal assets. Isaev and other participants in the transaction confirmed its configuration to the publication. The remaining 75% of the port and the Ogodzhinsky field belong to A-Property.

In April 2022, it became known that Rostec was withdrawing from joint projects with Albert Avdolyan after the introduction of Western sanctions against the state corporation.

The parties to the transactions did not disclose their amounts, but assured that they would be concluded at a market price. The decision to leave the Elginsky project in the state corporation was explained by the fact that it is not profile for her.

The source of the publication admitted that Rostec could have been pushed to withdraw from joint projects with Avdolyan by Western sanctions imposed on the corporation. They could interfere with the implementation of projects. Nevertheless, this version was not officially commented on.

Rostec's strategy is to enter large mining projects at the initial stage, to ensure the passage of procedures for obtaining licenses, protecting reserves and preparing project documentation, recalls Sergey Grishunin, managing director of the NRA rating service. After that, the state corporation comes out of projects with profit due to the growth in the value of shares of a mining company, which at a later stage of operation is more expensive, he adds.^[2]

Notes