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World Coal
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July 2015
was constructed using the latest
technologies with a special focus on
operational safety. It has
high‑performance equipment and all
extraction and conveying processes are
automated. Multi-functional position
control, emergency alerts, air and gas
control systems are in place, as well as
two degassing stations.
EVRAZ also owns a coal deposit in
the Republic of Tyva. Mezhegey is a
renowned metallurgical coal deposit
with estimated category A+B+C1
reserves of 213.5 million t of hard coking
coal. EVRAZ continues construction
work of the mine office and drifting
works in the mine. Meanwhile, the first
batch of Mezhegey coal has been sent for
testing at EVRAZ’s western Siberian steel
plant and received positive reviews from
steelworkers. EVRAZ plans to start
commercial mining next year. At the first
stage, volumes will exceed 1 million tpy
of coal, which it plans to use mostly at
EVRAZ steelmaking facilities. However,
this coal grade has a good export
potential so the company may consider
promoting it for external sales in the
future.
Typically, Russian coal has
been exported to Europe.
But with Europe’s need for
coal dropping, what other
markets is EVRAZ looking
to develop for its coal?
The key export market for EVRAZ is
Southeast Asia, particularly South Korea,
Japan, China. India is also an attractive
market. The company sees potential to
develop sales in the region as it can offer
high-quality products, low in ash and
high in fluidity, advice and
recommendations for our clients based on
our rich experience in supplying
metallurgical coal and concentrates for the
steelmaking industry, including EVRAZ’s
own steelmaking facilities. Moreover, it
can provide reliable and stable deliveries
of large volumes via the company’s own
seaport in the Far East. Europe, Turkey
and CIS countries continue to be attractive
directions for EVRAZ as well.
Has the downturn in the
Chinese market had any
impact on EVRAZ and has
it changed your thinking on
future developments?
The entire steel and mining industry has
been living in the conditions of the
Chinese downturn for several years. But,
China continues to be a huge market both
for EVRAZ’s steel and coal. In 2014, the
company’s sales to China exceeded
1 million t. This year, we are ready to
double deliveries.
Where would you like to
see EVRAZ’s coal business
in 1, 5 and 20 years?
Currently EVRAZ is transforming its coal
business into a large-scale global market
player. This year, the company plans to
strengthen its position in Southeast Asia
and in Turkey. Meanwhile, its strategic
plan is to ensure a stable and safe mining
and concentrate production, steady
deliveries to EVRAZ facilities and other
customers in Russia and abroad. If the
market conditions are favourable and
there is an increasing demand for the
company’s products, it will be able to
intensify mining and offer greater
volumes. The company’s deposit in Tyva
has a big potential. The coal there is high
quality, so when railway infrastructure
appears in the region, there will be an
opportunity to deliver this coal to Asia at
a low cost.
Coal News
Quick facts... Russia
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Russia is the largest country in the
world by area and the tenth by
population.
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The country holds some of the
largest energy reserves in the
world, including the second largest
reserves of coal (behind the US) –
some 157 billion t.
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Russia produced 389 million short t
of coal in 2012, according to
the US Energy Information
Administration, making it the sixth
largest coal producer in the world.
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Of this, 80% was thermal coal and
20% was metallurgical coal.
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The Kuzbass region accounts
for the vast majority of Russia’s
coal production with output
of 219.2 million short t in 2012.
East Siberia is a distant second with
output of 53.1 million short t.
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The Russian government has
committed to developing the
country’s coal reserves with
investment of US$123 billion
expected between 2012 and 2030,
alongside spending on logistics and
engineering capacities.
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Russia is also the the third largest
producer of oil (behind the US and
Saudi Arabia) the second largest
producer of natural gas (behind the
US) and the third largest generator
of nuclear power (behind the US
and France).
