MOSCOW - United Industrial Corporation (OPK) and Mitsui & Co., Ltd. signed and agreement on collaborative development of the Elegest coal-field in Tyva, one of the richest coalmines in the world, with a total reserve of approximately 900 million tons.
The agreement is intended for the participation of the signing parties in the conduction of a feasibility study on the construction of a mining complex at the Elegest coal-field, as well as for a railway line for coal transportation. Particularly, Mitsui will provide a part of the required expenses for the feasibility study, technical device and will have a priority option to acquire a minority stake of the project.
OPK`s subsidiary, “OPK Mining” is granted a Elegest mine working permit and intends to increase coking coal production that will reach 12 million tons by 2014. Thus, OPK will become the largest supplier of high-quality coking coal to the Russian and the international markets.
The project implies the construction of a 460 km railway line that will connect with the Trans-Siberian Railway. This year, OPK has signed an investment agreement with the Federal Railway Transport Agency of the Russian Federation on the collaborative financing of the railway construction by OPK and the Investment Fund of the Russian Federation on an equal basis.
The collaborative development of the Elegest coal-field is beneficial for OPK, as for Mitsui. Mitsui has positioned coal as one of its priority business areas. Thus, the largest Japanese corporation aims to establish a well-balanced portfolio with attractive assets in regions such as Russia, in addition to its core operating assets in Australia, for further contribution to stable coal supply to meet global demand.
For OPK, cooperating with Mitsui that has a wide experience in the industry and modern coal mining technologies, the cooperation will allow the company to supply high grade coking coal to the Russian and international markets with the shortest possible delay.
United Industrial Corporation (OPK) is a diversified holding company with total value of assets of more than US$13 billion. OPK develops and manages an investment portfolio in major sectors of the Russian economy, including the financial sector, real estate development, shipbuilding, mining and media. OPK Mining has a license to exploit the Elegest coal-field with total reserves of approximately 900 million tons of high-quality coking coal. The exploitation of the coal field started in June 2008. The project also implies the construction of a 460 km long Kyzyl-Kuragino railroad.
Mitsui & Co., Ltd. taps an expanding global network to access its technical devices in different business areas. Main businesses include sales, manufacture, export and import, international trade and services in the following fields: metal production and minerals, machinery, electronics & information, chemicals, energy, consumer products and services and logistics and financial markets. Mitsui is a diversified company, exploring natural resources, making commercial investments and developing technologies in new business sectors.
Source: OPK
Contact presse: Ogilvy Public Relations, Sabina Lindstedt, E-mail: opk at ogilvy.com
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