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Home Coal Demand

Coal: additional tonnage for additional investment

Editor by Editor
1 year ago
min read1 min
Russian coal

Open pit mine, coal loading in trucks, transportation and logistics, top view aerial drone.

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Russian Government obliged coal companies from the Kuzbass region to make an investment agreement with regional authorities for the export of additional coal volumes above 53 mio t to Far East.

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Export volume of 53 mio t is considered as a base level. It was established last year and set up for the fulfilment by the end of 2021. New resolution implies export of additional coal volumes above base level.

An investment agreement is aimed at directing some part of profit from coal sales at realization of non-coal related projects in the Kuzbass region. According to the government estimations around 14 billion RUR (around 190 million USD) can be attracted for those purposes and up to 6 thousand new workplaces can be created by using such agreements.

Companies can conclude an agreement on their own free will. Each company will have its own agreement. The distribution of additional shipment capacities and volumes will be done by the Ministry of Energy and will depend on the overall volume of additional tonnage requested by all companies.

Details of investment agreements will be set up by the Ministry of Economic Development. Follow-up actions will be done by the Kuzbass Government.

Earlier the Ministry of Economic Development suggested to oblige coal companies from the Kuzbass region to invest at least a half of additional profits, which derive from additional coal sales to Far East, to new projects in order to diversify the economy of the region.

In March 2021, the Russian Government set a goal to increase volumes of coal export from the Kuzbass region to Far East by 30% by 2024, i.e. from 53 mio t in 2021 to 68 mio t in 2024. In the end of August this plan was confirmed again.

Source: CAA Analytics

Tags: CAA AnalyticsRussian coal
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