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Colmar is ready to increase the export of high-quality coal

The company intends to compete with Australia on the supply of coal in the Asia-Pacific region

The Colmar company was founded in 2003, now it is the largest coking coal mining and processing holding uniting several enterprises. Its facilities are located in the Neryungri district of Yakutia and in the Khabarovsk Territory.

Colmar is ready to increase the export of high-quality coal
Photo: provided by Colmar

The balance reserves of Kolmar are estimated at 1,1 billion tons of coal. At the same time, the bulk of the reserves are in deficit premium grades of coking coal with special physical and chemical properties. Exports go from 60% to 70% of the company's products: K grade coals (coking unenriched), KZh (enriched coking) and CC grade coal.

The main buyers of the products are the countries of the Asia-Pacific region: China, Japan, Korea, Vietnam. In the coming years, the company plans to enter the Indian market.

By the way, in mid-August this year, a meeting was held between the management of Colmar Group and the largest Indian energy company Coal India Limited. After negotiations, the Indian delegation visited the Inaglinsky and Denisovsky mining and processing plants.

“Our company has serious intentions for cooperation with Russian partners, we plan to continue negotiations on coal supplies with the Colmar company,” said Binay Dayal, technical director of Coal India Limited.

Earlier, the Colmar Group held talks with another Indian energy company, Tata Power.

30-40% of Colmar coal is supplied to the domestic market. Products are sold to power plants of the RAO UES of the East power system, industrial enterprises and housing and communal services facilities of Yakutia, metallurgical and coke chemical enterprises in different regions of the country.

However, the company relied not only on the unique properties of the coal mined. The enterprises of the Colmar group of companies carry out full-cycle operations: exploration, production, enrichment, transportation by rail, transshipment at the seaport, and the actual export of products.

As Anna Tsivileva, Chairman of the Board of Directors of Colmar Group LLC, notes, a new team of top managers came to the enterprise in 2014, and it was then that the emphasis was placed on coal enrichment, obtaining high-grade concentrate with a high margin value (as already mentioned, Colmar Group includes two mining and processing plants - Ingalinsky and Denisovsky, both the first and anchor residents of the South Yakutia TOP). Time has confirmed the correctness of this approach. Now many coal companies are reducing production, steam coal prices are falling.

But enriched high-quality product does not threaten demand reduction. Case in point: in July 2019, Colmar became the winner of the Magnitogorsk Iron and Steel Works supplier competition. There are more than one thousand suppliers for this enterprise, and the best of them were selected by 17 nominations and dozens of criteria. According to Pavel Shilyaev, General Director of MMK PJSC, the victory in the Kolmar competition was ensured not only by the quality of its products, but also by the high level of organization of supplies.

Properly built logistics contributed to the rapid development of the company. One of the strategic advantages is the geographical location of Kolmar mining enterprises: in the immediate vicinity of Far Eastern ports, from highways (the railway line connects Kolmar enterprises with the Baikal-Amur Mainline and the Trans-Siberian Railway), as well as large highways, in particular, the Amur-Yakutsk trunk. This greatly simplifies and speeds up the delivery of products to consumers.

The agreements concluded with the main ports and terminals of the Far East allow the company to quickly enter the traffic flows to the Asia-Pacific countries: Kolmar products are delivered to consumers within a maximum of ten days.

“Our goal is to become a leader in premium coking coal among independent coal companies by the 2021 year,” said Anna Tsivileva.

To achieve this goal, of course, the work of our own deep-water port in Muchka Bay (the port of Vanino in the Khabarovsk Territory) will help, the first phase of the terminal will be commissioned in 2020. From now on, the holding's products will be delivered exclusively through its own port. It should be noted that VaninoTransUgol, a subsidiary of Colmar Group, is a resident of the free port of Vanino.

“A specialized terminal is being built from scratch, eight kilometers from the village of Vanino, taking into account modern requirements for handling dusty cargo,” says Anna Tsivileva. “Our port will be one of the safest in the world and will be one of the five largest in Russia.”

The Colmar company is confident that the holding will soon be able to compete with Australia, one of the world leaders in the export of coking coal.

As Anna Tsivileva emphasizes, the Asia-Pacific countries, the key consumers of Kolmar products, are interested in diversifying supplies. In some countries in the Asia-Pacific region, up to 70% of coal is supplied from Australia. But such a mono-dependence is fraught with risks of a very different plan: the slightest supply disruption will affect the work of metallurgical enterprises in countries that buy coal. In addition, now more and more often it is said about the depletion of resources of Australian mines located near the sea. And for the development of new, "mainland", it takes time, moreover, the cost of transportation will increase the cost of production. Coal consumers from the Asia-Pacific countries are looking to the future and are therefore ready to expand cooperation with a reliable supplier of quality products, such as the Colmar company.

“There is also such a moment: coal supplies from Australia go in large quantities, but consumers do not always need this. “Colmar” flexibly approaches the volumes supplied: we can ship both the 30 thousandth vessel and the 60 thousandth, ”says Anna Tsivileva. - And in a few days, our products will be at the buyers' disposal.

For your information:

Colmar Group in numbers

120 billion - investments in the development of production (2016-2023).

Over 20 million tons of coal - commodity volume of production in 2023 year.

1,1 billion tons of coal - The total balance reserves of Colmar.

9 000 - the number of employees by 2021 year.

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