Tashkent, Uzbekistan, April 14
By Demir Azizov - Trend:
Uzbekugol, an exclusive solid fuel producer in Uzbekistan, and China Coal Technology & Engineering Group (CCTEG) signed a contract for the modernization of coal mining production in the Surkhandarya region (south of Uzbekistan) worth $88.5 million, Uzbekugol told Trend on April 11.
It was earlier reported that China Coal Technology & Engineering Group won the tender for the modernization of producing capacities for mining the coal in Uzbekistan, with a total value of $101.3 million.
The Chinese company will replace the existing production technology at Baisun and Shargun coal deposits as part of the contract. It will deliver two mechanized complexes with a capacity of 450,000 tons per year each.
The project also envisages the development of new adjacent coal fields with the projected reserve growth to the amount of 50 million tons with the modernization of coal transportation system.
The first complex is planned to be commissioned in 2015, the second - in 2016. The equipment can be supplied in the third quarter of 2014.
The project will be financed through a loan from the Chinese Eximbank to the amount of $89.5 million, as well as the Uzbek side's equity - $11.8 million.
Shargunugol JSC has a license to develop Baysun and Shargun coal fields in the Surkhandarya province (south of Uzbekistan) with total explored reserves of 45.8 million tons of coal.
The state share in Shargunugol OJSC amounts to 51 percent, Uzbekugol OJSC owns 41.57 percent and the labor collective - 7.43 percent.
The Angren coal field is the largest in Uzbekistan, with explored coal reserves of 1.9 billion tons, including brown - 1.853 billion tons, stone - 47 million tons. The projected resources hit over 5.7 billion tons of coal.
Coal production is conducted in three fields, Angren brown coal field, Shargun and Baisun coal fields.
The need for solid fuel in Uzbekistan is about four million tons per year. The main consumers of coal in the country are Uzbekenergo's enterprises. They consume three million tons of solid fuel per year.
Uzbekistan increased coal production by nine percent, to 4.09 million tons in 2013 compared to 2012.
The brown coal production in the country increased by nine percent and amounted to 4.07 million tons, coal production increased by 1.5 percent and amounted to 20,100 tons, according to the company.
Uzbekistan intends to allocate some $555.2 million for the development of coal industry in 2013-2018 and to double the coal production to eight million tons.
The official exchange rate is 2267,74 soums /$1 on April 14.
Translated by NH
Edited by CN