Assembly Plant for Chinese Equipment for Mining Industry will be Constructed in the Far East
Kolmar is considering the possibility of constructing an assembly plant for Chinese mining equipment in the Republic of Sakha (Yakutia). General Director of Kolmar, the resident company of PDA South Yakutia, Sergey Tsivilev has made a statement to this effect.
Currently, Kolmar has enlisted the services of its Chinese partners Avic International State Corporation and TehGart Beijing to construct the Denisovskiy Mining and Processing Plant and Inaglinskiy Mining and Processing Plant in PDA South Yakutia in the Republic of Sakha (Yakutia) with a total capacity of 6 million tons and 12 million tons respectively.
We have reached a new milestone, and have already started the construction of a 12 million ton coal-preparation plant. We also intend to build airports. We are seriously considering the issue of setting up an enterprise together with our Chinese partners for assembling equipment for open cast mining. South Yakutia, which is a priority development area, is a unique region 414 square kilometres in area, which is bigger than the whole territory of Japan. It possesses unique reserves of coking coal, iron ore and rare earth metals and mineral fertilizers.
Sergey Tsivilev, General Director of Kolmar
The cost of investments in the Denisovskiy Mining and Processing Plant is almost RUB 2.9 billion. Joint investment in the development of the Inaglinskiy Mining and Processing Plant will amount to about RUB 25 billion.
One of the consumers of coal products from the Inaglinskiy Mining and Processing Plant will be Baosteel Chinese Corporation. The current annual contract for the supply of coal concentrate to China is about 240 thousand tons. The possibility of concluding a contract for the supply of concentrate from Q2 of 2018 with a total volume of 1.5 million tons is under consideration.
It is worth noting that the project to increase coal production in the Chulmakansky coking coal field (Inaglinskiy Mining and Processing Plant) is being implemented within the framework of the comprehensive investment program of the Kolmar Group of Companies including the development of the Denisovskoye Field and the construction of a cargo terminal in Muchka Bay in the Khabarovsk Territory. As a resident of PDA South Yakutia put it, the second stage of the construction of the mining and processing plant is being implemented.
According to the Minister for the Development of the Russian Far East Alexander Galushka, the “benefits and preferences within the framework of the PDA are rendered only to new enterprises.”
“Kolmar has already worked in South Yakutia. The projects it initiates are large and multi-stage. These projects need support. The introduction of the PDA regime will allow extending the projects, constructing new facilities and creating new jobs. Tax incentives will be extended to them,” he said. According to him, special attention will be paid to the environmental policy. “New enterprises are being created in the Far East with the observance of all established ecological standards and rules. This is a prerequisite for our investors. Kolmar’s projects are no exception,” the Head of the Ministry for the Development of the Russian Far East emphasised.