Slide 1
Russian Coking Coal Developments
and Leading Mongolian Operations
– Competition or Co-Existence
Presented by
John P L Bacharach, Director, IMC Montan, Moscow
23/24 May 2012
Slide 4
Apsatskoye
Name of Project: Apsatskoye
Developer: Arctic Developments/SUEK
Location: Near Chara, Chita Region
Coal Types: Coking and thermal
Reserves: About 425mt
Slide 5
Apsatskoye (2)
Mining Method: Surface and underground
Planned Full Capacity: 6.8mtpa
Approximate Capex: $1.0bln
Rail Connection: Short
Target Markets: China
Slide 6
Elegest
Name of Project: Elegest
Developer: Russian Copper Company
Location: Near Kyzyl, Tyva Republic
Coal Type: Coking
Reserves: About 400mt
Slide 7
Elegest (2)
Mining Method: Underground
Planned Full Capacity: 18mtpa
Approximate Capex: $1.8bln
Rail Connection: 430km
Target Markets: Russia 6-10mt, Export 8-
12mt
Slide 8
Elga
Project Name: Elga
Developer: Mechel Mining
Location: 370km west of Nerungri, Sakha
Republic
Coal Types: Coking and thermal
Reserves: About 2.0bln t
Slide 9
Elga (2)
Mining Method: Open Pit
Planned Full Capacity: 27mtpa
Approximate Capex: $3.0bln
Rail Connection: 315km
Target Markets: Asia Pacific
Slide 10
Mezhegeiskoye
Name of Project: Mezhegeiskoye
Developer: Evraz Group
Location: Near Kyzyl, Tyva Republic
Coal Type: Coking
Reserves: About 210mt (Mezhegeiskoye)
and 580mt (Vostochny)
Slide 11
Mezhegeiskoye (2)
Mining Method: Underground
Planned Full Capacity: 7-12mt
Approximate Capex: $1.5bln
Rail Connection: As Elegest
Target Markets: Asia Pacific
Slide 12
Ulug-Khem
Name of Project: Ulug-Khem, Central Area
Developer: Severstal
Location: Near Kyzyl, Tyva Republic
Coal Type: Coking
Reserves: About 630mt – Central Area
Slide 13
Ulug-Khem (2)
Mining Method: Open Pit
Planned Full Capacity: 12.5mt
Approximate Capex: $3.0bln
Rail Connection: As Elegest
Target Markets: Asia Pacific
Slide 14
Usinskoye 1
Name of Project: Usinskoye 1
Developer: Severstal
Location: Vorkuta, Komi
Coal Types: Coking
Reserves: 620mt
Slide 15
Usinskoye 1 (2)
Mining Method: Underground
Planned Full Capacity: 4.0mt
Approximate Capex: $1bln
Rail Connection: 30km to existing
Target Markets: Russian Steel Plants
Slide 16
Usinskoye 3
Name of Project: Usinskoye 3
Developer: NLMK
Location: Vorkuta, Komi
Coal Types: Coking
Reserves: 227mt
Slide 17
Usinskoye 3 (2)
Mining Method: Underground
Planned Full Capacity: 4.5mt
Approximate Capex: $1.5bln
Rail Connection: 3km from existing
Target Markets: Russian Steel Plants
Slide 18
Indicative Production Capacity in
2020 (mtpa)
Apsatskoya 6.8
Elegest 18.0
Elga 24.0
Mezhegeiskoye 9.0
Ulug-Khem 12.5
Usinskoye 1 4.0
Usinskoye 3 4.5
TOTAL 78.8
Slide 19
Summary
These seven developments will provide:
Almost 80mtpa of new production capacity
Secure supply of coking coal for Russian steel
makers
Big increase in coking coal supplies (and
some in thermal)
Massive pressure on rail and port capacity
Slide 20
Competition or Co-Existence Much of Russian new production will be used in
Russian steel plants
Any surplus will be exported through Far East
ports
Majority of Mongolian production likely to go to
China
Lack of infrastructure mitigates against
Mongolian coal going to Russia or Russian coal
to China
Most likely outcome is co-existence!
Slide 21
Contact
John P L Bacharach
Director
IMC Montan
Chayanova 22, Block 4
Moscow 125047
Russia
Tel: +7 499 250 6717
Fax: +7 499 251 5962
E-mail: [email protected]