Russian company increase coal mining

Actuality December, 21, 2007

According to the 2007 results the expected volume of coal mining on Belon Group enterprises will make up 4,778 mln tons and it exceeds the last year index by 40%. Indices’ growth will be attained as a result of production rates increase of all enterprises entering the group, reported the press-service of the Novosibirsk Company.

According to the results of 11 months, 2007 Belon enterprises extracted more than 4,2 mln tons of coking and steam coals. The mining volume of steam coals totaled 2,458 mln tons for January-November of the current year, a plan is 2,774 mln tons to the year-end. It exceeds the directional mining volume by 64% for the last year. The substantial increase of production volumes is attained on Listvyazhnaya mine as a result of modernization and introduction of high-performance mining complex. The coking coals mining totaled 1,815 mln tons from January to November. In 2007 it is planned to extract more than 2 mln tons of the coking brands coals and it is 16% higher than the analogical index of 2006.

The first modernization stage of Novaya-2 mine was completed this year and the plough system produced by DBT Company was put in operation. Modern equipment allows conducting the coal getting on thin layers, providing high quality of the extracted raw material. To the end of 2007 it is planned to extract about 30 thousand tons of coal with the help of the new complex, and already in March of the next year the mine intends to reach a stable production volume of 80 thousands tons per month. The volume of the coking coals processing totaled 4,14 mln tons for 11 months, the expected production volume is 4,493 mln tons according to the 2007 results.

Direction on processing of industrial volumes of steam coals was formed in 2007. In August was realized one of the company key investment projects - building of Listvyazhnaya benefication plant that will produce a high quality power concentrate. From September to December, 2007 it is planned to extract 490 thousand tons of cleaned steam coal on benefication plant. And next year it is planned to complete another large investment project and put Kostromovskaya mine into operation, where will be conducted the coking coals extraction. Also for 2008 is planned the beginning of industrial operation of the first unit of Novobachatskiy section. Putting into operation of these enterprises will allow substantially to increase reserves of Belon Group processing powers by own coking coals.

Large-scale investment program of Belon Group is realized in accordance with the strategy of company development that presupposes substantial growth of coals mining by 2012 – up to 13-14 mln tons. Belon Group is the largest Siberian trader of coal and metal. The company branches work in Moscow, Lipetsk, Magnitogorsk, Kemerovo and Belovo. The company structure includes coal enterprises in Kemerovo region, Belon Commercial Bank and the number of other enterprises and legal entities. The total coal mining of the Group made up more than 3 mln tons in 2005, the volume of rolled metal products realization - more than 265 thousand tons, brick - more than 32 thousands tons. The company profit yield totaled RUR 15,7 bln ($628 mln), net profit totaled RUR 1,3 bln ($52 mln). The main Group owner is Andrey Dobrov, Director General of Belon OJSC. In October the Magnitogorsk Iron and Steel Works OJSC (ММК) has acquired 10,75% of Belon stocks.