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Sergei Tsivilev: State support tools for projects in the Far East really work

Foundation for the Development of the Far East (FDFE), Kolmar and GTLK held a joint press briefing. In the meeting, the parties discussed the new points of growth for Russian business in the Far East, as well as issues of international business cooperation with countries in the Asia Pacific region.

Kolmar is a major coal mining holding company that is currently running two major investment projects on the territory of the Republic of Sakha (Yakutia). Here, the Company is building two mining and processing plants (MPP) — Denisovsky and Inaglinsky. By 2016, the Company had already opened a concentrating plant with a capacity of 2 million tons of coal per year. In 2017, the holding company plans to increase the production of marketable coal by 56.7% compared to the current year’s level, and by 2019, expects to reach a production of 14 million tons of coal production.

To carry out the projects, the Company uses its own funds. It also makes extensive use of new mechanisms of state support offered by the government to investors in the Far East. This way, using federal funds, the Company managed to build a railway line and a high-voltage power line to the substation, as part of the project on the construction of the Inaglinsky mine. What is important to consider here is the possibility of obtaining financial support for a number of projects from state development institutions, most notably the Foundation for the Development of the Far East, which is evaluating the possibility of advancing a loan to Kolmar, in line with an integrated project to increase coal production in the Chulmakansky and Denisovsky coal deposits. «The project is unique in its level of development, which allows meaningfully evaluating the prospects for its realization,» commented the Vice General Director of FRDV, Denis Askinadze. A tripartite agreement was recently signed between the Kolmar, FRDV and GTLK. As the Advisor to the General Director of GTLK, Stanislav Multach, pointed out, the subject of the agreement is the joint implementation of the investment project for the construction of infrastructure facilities of the specialized sea terminal for the transshipment of coal within the boundaries of the existing Vanino seaport in the Muchka Bay in Khabarovsk.

General Director of Kolmar, Sergei Tsivilev, said, «We are effectively collaborating with the regional and federal authorities. The Far East now has a strong team led by Vice-Premier Yu. P. Trutnev and Minister A. S. Galushko, as well as several heads of development institutions. In terms of business development, the parties have called for a larger number of new state support tools for investment projects that actually work, and that everyone can use.»

The investment projects that Kolmar is implementing play a strategic role in the development of South Yakutia and in the positioning of Russian coking coal onto the international market. The Company plays an active role in establishing and maintaining international economic relations with the countries in the Asia-Pacific region, most notable China, Japan, India and Korea. In this regard, in September 2016, as part of the previously signed memorandum with JFE Steel Company, the first trial batch of coal concentrate was sent to Japan. In the future, Kolmar is planning to increase the volume of exports. By the way, there is some historical background to this end. Most importantly, in 1974, the USSR and Japan signed an agreement on the supply of South Yakutia coal. Thanks to the collaboration between the two countries, the infrastructure was promptly put into place, and the city of Neryungri was founded, built as a link between the two countries. Today, Neryungri is the second largest city in South Yakutia. The production of one of the best coal in the world was begun in earnest.

«Our Company demonstrates on its own merits that despite all the economic difficulties in Russian business, there is a certain point of growth. We are successfully implementing our projects in Neryungri District of the Sakha Republic (Yakutia) under really difficult circumstances. We have built the necessary infrastructure from scratch, and continue to develop it and support the socio-cultural facilities. Our Company has carried out the first trial supply of coking coal to Japan and China, and we do not intend to stop there. Our plans include further development of relations with Japan and the Asia-Pacific region,» concluded the General Director of Kolmar, Sergei Tsivilev.