Construction of Inaglinsky coal complex

Location

• Neryunrginsky region, Sakha Republic (Yakutia)

Project initiator

• ZAO «Yakut coals – new technologies» (OOO “Kolmar”), A part of Integrated Development of Southern Yakutia project.
• Initiator - ОАО Southern Yakutia Development Corporation.

Project characteristics

• Creation of Inaglinsky coal complex with an industrial mine, coal production capacity 2.75 m t/year, and a benefication plant able to process 3 m t/year with the yield at over 2 m tons of cocking concentrate.

Volume of invstments

• RUR 10500 m in 2011prices ($369,7 m)

Infrastructure available

• There is Amur-Yakutsk mainline railroad (AyaM),
• LENA federal road,
• railway,
• airport.

The key advantage of the project is availability of developed infrastructure, including a dead-end railway track owned by OOO JV Erel, a participant of OOO Kolmar Holding. The track is connected to the public railway system owned by OAO JSC Railways of Yakutia (OAO Russian Railways).

Infrastructure required

• A railway line from Chulbas station – Inaglinsky coal complex;
• electric power supply to Inaglinsky CC, with a 110 kV substation and 110 kV transmission line.

Cost of project

• RUR 10500 m ($370 m)

Implementation period

• Project life cycle 25 years (till 2037)

IRR

• 26% at discount rate of 15%

NPV

• RUR 6100 m

Payback period

• 6,3 years

Markets

• Internal market of the Russian Federation and Asian-Pacific countries (Japan, Korea).

Investor's involvement

• OOO Kolmar 100%

Project detailedness

• A part of Integrated Development of Southern Yakutia project.
  
  • Project documentation for a mine and a benefication plant complete and approved by “Glavgosekspertisa’ (State Expertise);
  • the construction site for surface objects ready;
  • the plant equipment purchased fully, the mine equipment - partially;
  • all required permits and approval received.
• Positive opinion of VEB Supervisory Board has been obtained with a credit of RUR 6,414 billion for construction.

CEO of an organization implementing the project

• Leonid Arkadievich BERLIN (under power of attorney) Yakutian Coals – New Technologies ZAO Director-General
• Mikhail Lvovich BRUK, General Director, SYDC JSC