Uzbekistan, Tashkent, June 21 / Trend D.Azizov /
Chinese China Coal Technology & Engineering Group has won the tender announced earlier this year to choose the general contractor for the coal mining modernization in the Surkhandarya region (south of Uzbekistan) in the amount of $101.3 million, a source in Uzbekugol JSC told Trend on Friday.
Under the tender terms, the winner must undertake by 2016 turn-key commissioning of two mechanized complexes at Baisun and Shargun coal deposits with crude capacity of 450,000 tons per year each as well as develop new adjacent coal fields with the projected increase in reserves in the amount of 50 million tons.
According to the source, the contract with the Chinese company will be signed in the third quarter. He did not disclose the contract value.
It is estimated that the project will broaden the resource base and increase coal production up to 900,000 tons by 2020.
The project is financed through a loan from the Chinese Eximbank to the sum of $89.5 million and equity of the Uzbek side of Uzbekugol in the amount of $11.8 million.
The project operator is Shargunugol JSC, which holds the license to develop Baysun and Shargun coal deposits with total proven reserves of 45.8 million tons of coal.
The state owns 51 percent of shares in the structure of the share capital of Shargunugol JSC, 41.57 percent belong to Uzbekugol JSC and 7.43 percent to the labor collective.
At present, Shargunugol JSC undertakes the first stage of modernization worth $15 million, which provides for bringing coal production at the plant to 100,000 tons.
Funding for the first phase of the modernization is provided through a loan from the Fund for Reconstruction and Development of Uzbekistan and funds of the Uzbek side.
Uzbekistan has proven coal reserves in the amount of 1.9 billion tons, including brown coal - 1.853 billion tons, stone coal - 47 million tons. Forecasted resources amount to over 5.7 billion tons of coal.
Currently, coal mining is conducted at three deposits: Angren, Shargun and Baysun coal deposits. The enterprises involved in coal mining in the country are Uzbekugol JSC, Apartak JSC, Shargunkumir JSC and Erostigaz JSC.
Uzbekistan's demand for solid fuel stands at nearly four million tons annually. The main consumers of coal in the country are Uzbekenergo enterprises that consume annually about three million tons of solid fuel.
According to official statistics, Uzbekistan increased coal production by 0.2 per cent to 3.853 million tons in 2012 compared with 2011. In particular, the extraction of brown coal at the end of last year was at 3.78 million tons (a 0.8 percent growth), coal mining - 75,800 tons (down 21.4 percent).
As previously reported, in early June, Uzbekistan approved the state program for development of coal industry for the period of 2013-2018 for a total value of $555.2 million, providing for an increase in coal production up to 8.1 million tons by 2019.
The official exchange rate on June 21 is 2090.70 soum / $ 1