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Assembly Plant with the participation of China in South Yakutia

  • Published in Economy
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Russian-Chinese plant for the assembly of equipment for mining operations is planned to be set up in the ‘South Yakutia’ Advanced Development Zone, TASS reports.

"We are seriously considering the issue of setting up an enterprise together with our Chinese partners in assembling equipment for open cast mining. South Yakutia, the zone of advanced development, is a unique region, covering an area of 414 square kilometers, which is more than the entire territory of Japan. It has unique reserves of coking coal, iron ore and rare earth metals, and mineral fertilizers," said Sergei Tsivilev, CEO of Kolmar, a resident company of the ‘South Yakutia’ Advanced Development Zone.

As the Ministry for Development of Russian Far East explained, ‘Kolmar’ with the participation of Chinese partners - AVIC International Corporation and Techgart Beijing - is building the Process Plants of Denisovsky and Inaglinsky in Yakutia with a capacity of 6 million tons and 12 million tons respectively. The cost of investments in ‘Denisovsky’ is almost 2.9 billion rubles, joint investment in the development of ‘Inaglinsky’ - about 25 billion rubles.

According to the Minister for Development of Russian Far East, Aleksandr Galushka, "the projects initiated by the Kolmar Company are large and multi-stage, these projects need support." "The introduction of the regime of Advanced Development Zone will allow expanding the projects, constructing new facilities, creating new jobs, and they will be subject to tax incentives," he said.

One of the consumers of coal products of the Inaglinsky Process Plant will be the Chinese Baosteel Group Corporation. The current annual contract for the supply of coal concentrate to China stipulates 240 thousand tons. The possibility of concluding a contract for the supply of concentrate from the second quarter of 2018 with a total volume of 1.5 million tons is under consideration.

The project to increase coal production at the Chulmakanskoye coking coal deposit (Inaglinsky GOK) is implemented within the comprehensive investment program of the Kolmar Group, including the development of the Denisovskoye field and the construction of a cargo terminal in Muchke Bay in the Khabarovsk Territory.