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China Coal will invest $88 million for modernization of coal mining in Uzbekistan

16.04.2014 732

     On April 9, JSC UzbekKo’mir and China Coal Technology & Engineering Group (CCTEG) signed a $88.5 million contract for the modernization of coal mining system in Surkhandarya region, reports the press service of UzbekKo’mir.
     The Chinese company will replace the existing production technology at Baisun and Shargun coal deposits. In particular, CCTEG will supply, on "turnkey" basis, two mechanized complexes with capacity of 450 thousand tons of coal each year. The project also provides for the modernization of coal transportation system.
     Term of commissioning of the first complex is 2015, of the second - 2016. Supply of equipment may begin in the third quarter of this year. The contract was signed following the tender won by CCTEG in June 2013.
     The Project worth $101.3 million will be funded by the Chinese Eximbank loan, $89.5 million, as well as with own funds of UzbekKo’mir, $11.8 million.
     According to the calculations of industry experts, during modernization and expansion of raw material base, coal production in Uzbekistan could rise to 900,000 tons in 2020, against 20,000 tons in 2013.
     The Project will be operated by ShargunKo’mir, which holds the license to develop Baysun and Shargun coal deposits with total proven reserves of 45.8 million tons of coal. 51% of shares of JSC ShargunKo’mir belongs to the state, 41.57% - to UzbekKo’mir, 7.43 % - to its employees.

UzReport 16.04.2014

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