19 September 2016

By 2021 Urgalugol plans to double production of clean coal to 12 Mtpa

By 2021 Urgalugol (Khabarovsk region, part of SUEK) will expand the capacity of its washing plant which is located in Verkhnebureinsky district of the region as well as commission other facilities to double clean coal production.

“Over the next five years we need to reach the capacity of 12 million tonnes per year. Chegdomyn coal washing plant was constructed with the potential for expansion and increasing its capacity. It has been designed that way. We will commission other facilities as well,” says Alexander Dobrovolsky, General Manager of Urgalugol.

According to Vyacheslav Shport, Governor of Khabarovsk region, the mine is planning to increase its production capacity by 1 million tonnes every year and to create about 300 new jobs. “This is super-fast. At present the washing plant can produce 6.6 million tonnes per year, they want to produce 7 million tonnes and increase production even further. They are developing very actively. They are constructing faster than the regional government approves any documents. They have asked us to reduce bureaucracy, to allot land faster. We will make this happen,” says Shport.

According to the General Manager of the mine, they consider the entire Asia-Pacific region as their potential market.

“Today the domestic market is limited and export markets are not. All we need to do is mine and sell coal,” notes Dobrovolsky.

He mentions that besides increasing capacity of the washing plant which was commissioned in December 2015 the short-term plans of the company include construction of Pravoberezhny open pit which will produce 3 million tonnes per year. At present, the civil and structural works at mine’s industrial site are underway. Mining and transportation equipment has been contracted. Production is expected to start in 2018 and the mine should reach its design capacity by 2021.

Urgalugol operates open pits and underground coal mines in Khabarovsk region at Urgalsky hard coal deposit (Verkhnebureinsky district) and Marekansky brown coal deposit (Okhotsky district). The approved balance coal reserves amount to over 2 billion tonnes.

In 2015 Urgalugol produced 5.6 million tonnes of coal, which is 4% higher than in 2014, and processed 5.42 million tonnes of coal (a 62.7% increase). 2015 sales included 2.05 million tonnes to the domestic market (a 9% increase) and 2.8 million tonnes for export (a 14% increase).
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