PRESS OF UZBEKISTAN
February 27, 2017
UZBEKISTAN TO CHANNEL 690.5MN INTO COAL INDUSTRY
Uzbekugol held on February 20 a press conference titled ‘Levels of perspective specialty development’ to inform media on the work done under the Cabinet Resolution ‘On Additional Measures for Improvement of Coal Production Supply to the Population and Budget Organisations of the Republic.’
Uzbekugol, a part of Uzbekenergo, has mined and sold coal for over 69 years. Of 5.7b tonnes of coal, only 1,9b tonnes have been explored.
Uzbekugol’s agencies mine 4m tonnes of coal per year, with 85% supplied to the energy sector. The population and budget and municipal sectors are the main consumers.
The Resolution provides for 84 coal warehouses to be built in the regions and equipped with briquette-building machines.
The project, costing 45.4bn soums (currency rates of CB RU from 27.02.2017, 1$= 3356.87 soums), will be financed by a 2-year 7% credit by the People’s Bank.
Apart from pushing briquette production up 800,000 tonnes, retail price slumped 13% to 126,400 soums per 1 tonne, as Uzbekistan Railways slashed 50% of its transportation price until March 1.
Under the newly-adopted draft Coal Industry Development and Modernisation Programme 2017-2021, $690.5bn will be invested into 6 projects. The funds are as follows:
$87.5mn – the capital of coal companies;
$155.6mn – credits by regional commercial banks;
$68.7mn – credits from the Reconstruction and Development Fund;
$378.7mn – China’s soft loans to SCO member states.
The investment projects include:
Shargunkumir Modernisation, a $105.5mn project with a Cabinet-approved feasibility report;
Angren Mine Construction, an estimated $165mn project with the feasibility study in progress;
Nishbash Mine Construction, an estimated $175.2mn project currently under examination;
Equipment Upgrade, an estimated $170.2mn project involving the purchase of mining equipment;
Uzbekugol Production Capacity Support, a $15mn project to buy details for mining equipment;
Railway Transport Modernisation, a $59.6mn project to buy locomotives, dumpcarts and others.
Thanks to the projects, the stripping works in 2017 are expected to reach 22.3mn cubic metres, with 26.8mn expected in 2019 and 27.8mn in 2021.
If in 2016 surface mining brought in 3.6mn tonnes of coal, then 2017 will bring 3.72 tonnes. Up to 3.97 tonnes of coal are expected in 2019 and 4.14 in 2021.
The total of coal produced will rise from 3.87mn tonnes in 2016 to 3.92mn tonnes in 2017, 4.78mn tonnes in 2019, and 11.67mn tonnes in 2021.