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Resident of the Chukchi TOR increase coal production

The resident of TOR "Chukotka" company "Beringpromugol" plans to increase coal production in the Amaama coal basin from 576 thousand tons in 2018 to 680-750 thousand tons in 2019. Also, an increase in sales from 393 thousand tons in 2018 to 650-720 thousand tons in 2019 is predicted.

Plans to increase production are based on good results in 2018, in which the project investor (coal company Tigers Real Coal Limited) listed on the Australian Stock Exchange announced a positive EBITDA of 15.3 million Australian dollars (hereinafter - AUD) and net operating cash flow of 8 million AUD. Now the company has completed the transition from exploration to production with good production and financial results in 2018 and confirmation of its forecast for 2019, including an increase in production and sales.

The production growth forecast in 2019 was made possible thanks to significant investments in mining equipment and infrastructure, transport and port logistics. This includes the purchase of two new 500-tonne barges built in China and two previously operated 500-tonne barges, which will be delivered to the port in time for the 2019 shipment season. Medium-term growth factors include the expansion of production, the beginning of work on the design of a plant for the processing and enrichment of coal. Also, the ongoing reconstruction of the port is expected to increase export capacity to 2 million tons per year, due to increased raid transshipment capabilities.

In his speech at today's meeting of shareholders Craig Wigill, Chairman of the Board of Directors of Tigers Real Coal, noted that the strengthening of the company's profile confirmed the investment strategy for commissioning Project F of the Amaam Severny deposit and, thus, moving from the stage of a geological exploration company to a growing producer coal, which plays an important role in the supply of products to the Asian steel and energy markets.

As the CEO of Tigers Real Coal, Dmitry Gavrilin, explained, "the company put into operation a remotely located field in a very short period." “Since we first explored the Amaam Severny field in the winter of 2013/14, it took three years to start production in January 2017. This is very fast by international standards, especially given the volatile coal market and the complex geopolitical environment in which TIG operates during these years. We are increasing our turnover over the past two years and we expect to maintain growth rates in the future, ”he said.

As previously reported, Tigers Real Coal plans to become a significant supplier of high-quality coking coal to the sea export market by developing its assets located near the coast of the Bering Sea in the Russian Far East, in the Chukotka Autonomous Region. Two licenses controlled by TIG, Amaam and Amaam Severny, together constitute the “Coal Project Amaam”.

In turn, the Agency of the Far East to attract investment and support exports (ANO IPA) is ready to assist investors in the coal industry and the development of mineral resources. The agency is ready to accompany projects from the stage of the project to the launch of the project and to support the project further. In particular, ANO API manages the selection of state support measures, including consulting and organizational assistance in obtaining resident status of preferential tax regimes of TOR and the free port of Vladivostok, acts as an initiator in developing new support measures, attracts banks and co-investors to the project.

“Our task is to help businesses launch new industries and modernize existing ones, create jobs in the Far Eastern regions and in the Arctic territories. All this allows you to get new money in the form of federal and regional taxes. And this means new funds for the construction of transport and social infrastructure, to improve the quality of life of the Far Eastern and Northerners, ”said Leonid Petukhov, General Director of the ANO API.

It should be noted that at the beginning of January of the current year, at the suggestion of the Ministry of East Development of Russia, the borders of the PDA were increased in the Chukotka Autonomous Region. This allowed the launch of new projects for the development and development of deposits.


Information provided by the press service of the Agency for the Far East to attract investment and export support

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