The Elginskoye deposit is the source of an expensive coking coal. This type is in demand by metallurgists in Russia and neighboring countries engaged in the smelting of metals. In Russia, there are 12 players in the coke market with annual raw material production in the range of 0.4 -21.7 million tons.
Great Five
The leaders of the industry with the volume of production, measured in millions of tons, are:
- Evraz Group, 21.7;
- Severstal Group, 12.6;
- Mechel, 8.6;
- Sibuglemet 8.3;
- The group of companies Iskandar Makhmutov, 7.3.
Production start
Geography affects the price of coke, constantly needed by metal producers. The Elga coal deposit was estimated at 2.2 billion tons in terms of raw material reserves. For delivery to the consumer, wealth must not only be obtained, but also transported.
Development of the Elga field began in 2011. The owner of the raw material resource invested his own funds in the construction of the railway between the production point and the line of the Baikal-Amur Railway. In 2008, at the request of Mechel, Transstroy began laying the track. The branch stretches for 321 km between the Ulak points of the Far Eastern Railway and Elga. The road is only the initial stage in the development of the territory of the coal basin; enrichment plants are needed, but it comes down to financing.
Investment objectives
Not every systemically important bank is ready to become a creditor of an expensive project. The first to get involved in the VEB business. Back in 2013, a loan was issued for a period of thirteen and a half years. But Mechel was unable to service the loan, a large overdue debt formed, VEB refused to continue financing, but retained a 49% stake in Elgaugol as a pledge.
Gazprombank entered into business. Through financial transactions, a portion of the initial loan was repaid. The company ends year after year with debts. Hopes to attract investors by December 2017. In the meantime, he is fighting for the creation of a concession for the completion of the railway. This option of concessionaires is being considered:
- Mechel PAO (OJSC - earlier), owner of the finished site;
- Russian Railways, the person to whom the line will be transferred after construction is completed;
- PJSC Gazprombank, source of finance.
Open horizons
The life cycle of each field consists of several stages. One of them is exploration and estimation of mineral resources. The Elgin field was evaluated using the Australian JORC reporting code. For Mechel Group, this is an investment project. When evaluating stocks, the company realizes that returns will follow in a dozen years.
Due to the close level of the coal seam mining is produced by an open method. This method is cheaper - no need to spend money on the development of mine shafts, and safer - no need to fear flooding with groundwater. No need to build air supply systems to the mine, there is no danger of the horizon collapsing. Already taking into account the above reasons, open mining is more efficient.
The performance characteristics
Elga deposit in Yakutia is a source of scarce raw materials for metallurgy. Coal is estimated by parameters:
- The calorific value is 6500-8600 kilocalories per kilogram of combustible fuel.
- The content of volatiles is up to 40%.
- Humidity - in the range of 4-15%; dry coals give more heat, less weather.
- Sulfur content - 0.5%; the less sulfur in the combustion products, the less acid is formed in the air under the influence of moisture.
Finished products for blast-furnace shops of metallurgical enterprises are produced from the raw materials of the deposit at the processing plant . Already in 2014, the production rate of 2.7 million tons of coal and 2.3 million tons of coke for metallurgists was achieved.
Mining coal, selling coke is a good business. Without coke, furnaces do not melt metal.
The main thing is people
So far, it has been a matter of financing an expensive investment. But after all, people mine coal, conduct reconnaissance, open 15-meter layers, transfer mining by cars to a transshipment point in Uluk.
Generals of the mining industry organize the process in all directions. Heavy mechanical labor rests on the shoulders of ordinary hard workers. When Mechel PJSC (OJSC - before the new law) opened a credit line for the development of the strategic object, it was planned to organize five thousand jobs and settle the territory from scratch. After all, Elga is located 400 km from the nearest town of Neryungri.
Mining specialists, explosives, heavy equipment drivers, drivers - all work on a rotational basis. Otherwise, it is impossible. After all, the village is temporary, trailers. Of course, there is a stationary dormitory, but your own home is only a dream. In fairness, it is worth saying that the site has a bathhouse, two canteens, a store with essential goods. Dirty clothes can be washed and dried in the laundry room.
Prospects for social amenities
But people strive for stability, for life with family. Not everyone likes the state of migratory birds. According to company management, the salary at the Elginskoye field is one of the highest in the industry. For residents of Neryungri this is an obvious fact. And for those who have come from far away, the road and life eat up a substantial part of the salary.
It is necessary to take into account the harsh Yakut climate - winter lasts from September to May. The three remaining months include spring, summer, and fall. It is morally and physically difficult for visitors to live in conditions of eternal winter.
The city of Neryungri was also not built immediately, but its construction was supervised by the state, which at that time was aware of social responsibility. Elga coal deposit is owned by private individuals.
Now people are doing the same job, but in a private company, which has neither a financial statement, then a loss. The trains, coal tankers go to consumers. But there is no profit left on the development of the social sphere.
In Yakutia itself , coal is in demand in the housing sector, it goes to boiler houses for heat production and for heating in the private sector.
A small share of Yakut coal goes to the metallurgical enterprises of the Urals. The main consumers of coal products from the Elga deposit are the countries of the Asia-Pacific region: China, Korea, Japan.
Don't count diamonds
Because of coal alone, such a large investment would be unjustified. Some transportation costs fly into the penny: by cars from the mine to the factory - from the factory to the transshipment point - by train along the BAM to the port of Vaninsky - by sea cargo ship to the consumer. Black ember becomes gold.
But during the exploration of the territory, rare earth elements of tungsten and molybdenum, ore gold, diamonds and ornamental stones, granite demanded in the construction, were found.
Exploration of the territory is not completed, reserves calculations continue. According to geologists, another 20 billion tons of coal can be excavated around the Elga deposit.
MICEX Issuer
The situation with the exploration of a new deposit, financing, volumes of production and sale of coke, coal was constantly used by players on the Moscow Interbank Currency Exchange. For three years from 2008 to 2011, quotes rose from 100 rubles to 1000, that is, 10 times. And then the recession began, as investing at the end of the year brought only pessimism. The lazy sideways movement continued for 5 years until rumors about Gazprombank's participation in a strategic project passed.
From August to November 2016, Mechel shares rose to 200 rubles. Now optimism has diminished in connection with the next unprofitable year. But the company was tasked with commissioning additional capacities at the processing plant, bringing to mind and transferring a section of the railway to Russian Railways, increasing production volumes to 4.5 million tons per year.
Refuse
In the 20th century, taiga grew on the site of an open coal deposit. Now there is no forest, open subsurface dusting, national strategic reserves are sailing beyond the cordon.
Russians are not greedy, they can share wealth. But companies implementing global projects need to think hard about what they will leave for their descendants - land suitable for living or lunar landscapes.