Mining

Enisey Production Company Project

Enisey Production Company (EPC), a part of OPK Mining, envisages construction of a facility for mining and beneficiation of the Elegest Deposit coals, capable of producing up to 15 mln tons per year. EPC will become one of the largest producers of hard coking coals on the Russian market, one of the world’ five largest coking coal producers and one of the leading Russian company from the reserve standpoint.

EPC’s share of the coking coal market will only increase since the existing coal mines are exhausting their cocking coal reserves at a high rate.

According to the Coal Market Situation Research Institute, by 2015 the Russian deficit of extra-high-grade coal will be 10 to 12 mln tons per year, and by 2020 it will increase up to 15 to 17 mln tons per year. According to the world’s leading analytical agencies, the demand for Russian coking coal will grow by 40% by 2015, which will result in the cocking coal deficit of 30 mln tons.

The strategically favorable location of the deposit will make it possible to diversify cocking coal supplies to the customers, preventing its “attachment” to some particular market. EPC’s another attractive point is high efficiency of coal production in the deposit, which is due to favorable mining conditions:

• the deposit has 4 workable seams,
• 80 per cent of the coal is concentrated in the main seam measuring 6.4 meters in thickness,
• the coal seams are relatively shallow,
  - the gas content is within the working range.

By their characteristics, the coking coals of EPC’s deposit are among the best ones not only in Russia, but also in the world.

the period of construction of the coal production facility by EPC will be 6 years. When coal production is started in the deposit, EPC will be able to satisfy the increasing high-grade coking coal demand of foreign and domestic metal-making companies, minimize the coal deficit on the market and become a leader of the coking coal mining market.

Deposit development will make Russia the third largest exporter of coking coals to the world market.

Development of the Elegest Coal Deposit is integrated with OPK’s biggest infrastructure project – construction of the Kyzyl-Kuragino Railroad.