«VostokCoal-Dikson» and the «Far East investment and export agency» signed a cooperation agreementNews
The agreement between "VostokCoal-Dikson” and the “Far East investment and export Agency” (ANO FEIA) was signed in Vladivostok in the presence of Deputy Prime Minister of The Russian Federation – Plenipotentiary representative of the President of the Russian Federation in the far Eastern Federal district Yuri Trutnev. Signatures under the document were signed by the General Director of ANO FEIA, Leonid Petukhov, and General Director of "VostokCoal-Dikson" Dzhulustan Borisov.
In accordance with the agreement, the parties will collaborate in the implementation of "VostokCoal-Dikson" project development of the Taimyr coal basin. ANO FEIA will assist the project in obtaining the state support necessary for its successful implementation. This, in particular, the inclusion of "VostokCoal-Dikson" into the residents of the Arctic zone and support of legislative initiatives necessary for the development of the project. ANO FEIA will assist the company in effective cooperation with other institutions of Federal and Regional authorities, as well as in negotiations with potential investors and partners.
The agreement was signed during the official visit to Vladivostok of the Indian delegation headed by the Minister of trade and industry, held on the eve of the Eastern Economic Forum. In the framework of the visit, negotiations were held between the leaders of "VostokCoal-Dikson" and the largest coal company in India Coal India. The Indian company has expressed interest in partnering with "VostokСoal-Dikson", which involves the acquisition of the Taimyr coal, and joint participation in its production. For a deeper study of this interest, the arrival of Coal India representatives to Taimyr was planned.
LLC "VostokСoal-Dikson"(before the name change – LLC "Arctic Mining Company-Dikson"; under control of Management Company "Vostokcoal") implements the project of development of the Taimyr coal basin. Forecast resources – 225 billion tons of quality grades of coal A, T, ОS, SS, KO, K, KZh. The company has been conducting geological exploration since 2016. Opened two deposits with total reserves of 69 million tonnes, with production anticipated to Start in 2019. After reaching the project capacity the annual production volume will amount to 30 million tons. For the export of coal, the company would build its own coal terminal and create an ice-class fleet. Shipments of coal will be conducted year-round, with support of "Atomflot" icebreakers during the winter navigation.
India is the second largest coal producer and importer in the world (Coal India data). In 2018, with production of 730 million tons, coal consumption in the country reached 969 million tons. According to Coal India, in 2017-2018, India imported 47 million tons of coking coal, the demand for this type of coal will increase, and by 2030-2031 their imports will amount to 140 million tons. Coal India predicts that the current main suppliers – Australia, Canada, United States – will not be able to meet the growing demand, and therefore the country is interested in increasing supplies from Russia.