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Oleg Misevra: "We have everything our own"

The details of the project for the development of the Solntsevo coal mine in Sakhalin and the Omsukchan coal basin in the Magadan region, as well as the social responsibility of business and the work on attracting personnel to coal enterprises in Sakhalin, was told in an interview to East Russia by the president of the Eastern Ore Mining Company Oleg Misevra

- Oleg Anatolyevich, at the Eastern Economic Forum, the Eastern Mining Company (VGK) presented its project to develop a coal field in Sakhalin. Potential investors are already showing interest in it. Different media assess its value in different ways - it was about 70 billions of rubles, then about 61 billion, then about 36 billion ... Which figure is more accurate and what determines the final value of the investment?

Oleg Misevra: "We have everything our own"
Special project Coal of the East of Russia
- Strangely enough, all these figures are correct. 70 billion is a complete assessment of the project until its completion, that is, the sum of all the necessary investments. And 36 billion - is the initial investment, which is necessary for the output of work at the field to the designed capacity. These funds will be required for the construction of a port, conveyor, cut and output of the enterprise for the planned volume of coal mining. And further, when everything will already work, in the renewal of equipment for 20 years will be invested another order of 34 billion rubles.

- But after all, the ruble exchange rate is changing, there are crises ... Are you frightened by the example of the MECHEL, when they too, probably, figured everything out by taking loans, and as a result, when prices in the world market fell, they were credited, and, in fact, Without even being able to service your debts?

- We consider the risks of the project at today's rate and in connection with today's realities, without trying to predict fluctuations in rates and world market conditions in the distant future. It is almost impossible to do this. And the danger you are talking about does not exist for us, for the simple reason that we, unlike MECHEL, have nothing in the project that we could not influence. We do not have a railway, which tomorrow suddenly sets tariffs twice as much. We all have our own: a cut, a port, a conveyor line. We can be influenced only by the cost price - and also by the conjuncture in the world market, because At us 99,9% of production leaves on export.

- The prices of coal decline, it seems, nowhere else?

- They can fall and lower, no one is immune from this. But for several months the price remains stable.

- Speaking about the global market, what competitors do you primarily take into account? Australia, given that it occupies 50 percent of the global coal market?

- No. Specifically for us, it is not a competitor. The entire Russian coal industry competes with Australia, because it sells only coal and anthracite. And Australia also works in the coal segment. A VGK sells brown coal. I will explain for understanding: there are several types of coals, divided into different brands. The youngest and least caloric (from 3000 to 5000 Kcal / kg) is brown coal. 5000 Kcal / kg is the boundary between brown and hard coal, although there are different gradations that are not well understood to the layman - the percentage of moisture, etc. In addition, in coal, there is a class such as coking coal, which goes to the needs of metallurgy ... And the oldest and most caloric coal (from 7000 Kcal / kg and above) is anthracite. So, we sell brown coal and compete not with Australia, but with Indonesia. But the competitors we are very relative: Indonesia exports about 400 million tons of brown coal per year. Brown coal from Russia is supplied only by us, and the volumes supplied are insignificant - this year 3,5 million tons. Even if we bring this figure to 10 million, it will still be 40 less than the Indonesian one. Dumping to "crush" us, just does not make sense, on this a large exporter will lose much more himself. Therefore, we can be relatively calm, working on the traditional market for Japan, Korea and Taiwan. This year we started deliveries to India, which is not traditional not only for us, but also for other Russian coals.

- And how are you planning to finance the Sakhalin project, and what are your own resources at the moment?

- We plan on 20-30% to invest in it own funds, and to attract the rest from investors, as well as in the form of loans through the Development Fund for the Far East. After the VEF, many people became interested in our project, but among these “interested parties” there were mainly various investment funds, the so-called “portfolio-keepers”. And we need a strategic investor who is ready to interact with us right up to the launch of the project and with whom there will be no internal corporate disagreements. In addition to the project of the Solntsevsky coal mine in Sakhalin, we have a second project, the development of the coal deposit of the Omsukchansky basin (three sites with common reserves and resources for 100 million tons of raw coal) in the Magadan region, it will cost about the same money . Each of these projects has its pros and cons. In Magadan, everything depends on the infrastructure, because it is possible to extract coal (and we do this within the framework of our exploration licenses), but for its export we need a road and a port. There is a port of Shakhtersk on Sakhalin, and we have already begun to develop it, there is a road to the port. In Magadan, everything must start from scratch, this is a startup "in the open field." There we still have only a license for geological exploration, and everything else - from the road to the port and the field itself does not yet exist. Additional exploration work is to be carried out, to put reserves on the balance, obtain a license, build a road and a port, and only then begin work. But if we invest in such an infrastructure, we will be able to do the project together with other enterprises, since around this road there are deposits of gold, metals, iron, etc. Just a few people went there because of the lack of infrastructure. We have already advanced to the stage of negotiations with the Ministry of Eastern and Eastern Development and the Foundation for the Development of the Far East. On Sakhalin, despite the availability of the port and the road, we have a monoproject. We have rented the port of Shakhtersk for 49 years and it works so far only for a single consumer - for us. Of course, we would not have refused the status of a free port, if it is granted, what is being talked about in this region now, and get some preferences there, but we don’t count on it especially. Although there are some specifics regarding the three ports, the fate of which the governor has already discussed with the Prime Minister, we have a chance to add to them our port, which is intended for receiving barges with coal. Now the reconstruction of the port was relatively inexpensive - 20 - 30 million and coastal infrastructure of about $ 10 million. To bring it to 10 - 15 million, investments are needed in $ 200 - 220 million. Initially, we were going to build a port in Izylmenyevo, closer to the field, in 14 km from it. 14 and 30 km - a tangible difference. But it turned out that the short way lies through the mountains, along the passes. At the price, it would be no less than long, operation would be more expensive, and we considered the construction of such a road economically inexpedient and decided to develop the port of Shakhtersk.

- And is there any one of the potential investors interested in the project and interesting to you for the further implementation of the project?

- Preliminary negotiations with us were conducted by the Australian firm Tigers Realm Coal. There was one fact-finding meeting, it is planned soon 2 mutual visit, them to us on Sakhalin and ours - to Chukotka.

- What is their interest in you?

"I think it's better to ask them." And my interest is, perhaps, to create, in the long run, coal mining and trade, without the participation of the railway with its port facilities, and offer coal to all markets: brown, stone, energy , Anthracid and coke. It will be a company with very good capabilities and maximum resilience to the impact of price, economic and other crises. But, for the time being, Tigers and I have not yet discussed any possible variants of the development of relations, both joint and separate. Our, Russian, investors showed interest, too, but quite specific. A number of banks offered us to find a buyer for a shareholding. But, frankly, I hardly believe that someone will acquire 25%, and then buy everything else. The project is only evolving, nobody can come and buy everything at once - it is quite specific and requires sufficient knowledge and experience in this industry. But in general, we do not really break our head right now over where to get the money. Our project is quite profitable, with payback in 4. I am more than sure: even if, due to sanctions, Western banks do not work with us, we will find investors for its financing.

- One of the most painful questions for the Far East is personnel. It is constantly said that local workers are not allowed to work, inviting “guest workers”, etc. And you have a vacancy on your site with a decent salary for the region 50 - 60 thousand rubles. How do you recruit staff and what problems do you face?

- Even with Sakhalin, we people, unfortunately, we take on a shift work method. The infrastructure is too poorly developed - not only port and railway, but also connected with transportation and accommodation of people. A person can not go to work for 300 km, and in the evening return, and the settlements are scattered all over the island. We do not have Shanghai, where high-speed trains run, I hope so far! Therefore, the shift method is the only solution. The very same area is very sparsely populated. According to the census, there are about 20 thousand people living there, but in fact, it seems to me that the data is already outdated, and the people there are much less. And we have a mine where 800 people work, the cut is 800, the second cut is 800, the two ports are 400 people, and the competitors, plus the dressing plant, have a hundred more, plus the transportation ... In total, it turns out that Need about 4 - 5 Thousands of workers, and it is clear that the local workforce is not enough for it, because the specialties range from a sinker - an excavator to a driver. People from us get and 100 thousand rubles, we are on the island of a coal company with the largest salaries. Colleagues pay on 50-60 thousand. The point is not that we are so generous or kind, but we are simply too far away, and we do not have enough qualified personnel. We are forced to overpay everything from workers to directors, otherwise they will not go to work for us, and the dynamics of our development are very fast. Growing almost 100% per year by volume.

- And what kind of citizens do you have?

- Basically it's Russians. Although we have experience working with Vietnam, a hundred Vietnamese people work with us all the time. Only not in Shakhtersk or Uglegorsk, but in Bashnyakovo, this is a small village in 80 km from Shakhtersk with a population of less than a thousand people. Nobody wants to go there, because there is no infrastructure, including social infrastructure. When a person comes home from work, he has nothing else to do but fish in the winter or summer. Therefore, we are taking Vietnamese there who agree to such conditions. They are satisfied with the fact that we are giving them a good new technique, with which we have no problems.

- The authorities are not going to somehow develop this mono-district?

- A question for the authorities. Assume Boshnyakovo - monoposelok. From employers - we and social sphere. It all depends on our prospects. We will develop - the authorities will develop the village, we will not, hardly, although this is my opinion, the authorities may have a different vision, maybe they want to develop tourism and fishing in Boshnyakovo ... but for now, only we. According to Uglegorsk and Shakhtersk, it is more clear that we, as I have already said, are developing very dynamically and will continue to grow. We are sure that we will restore the mine and take new deposits. There, the government will definitely invest and develop social programs, and it is already doing it intensively. It builds kindergartens, repairs schools, hospitals, makes a way between cities, builds a new recreation center in Shakhtersk. We ourselves also began to make efforts to bring cities in order. First of all, we offer high-paying jobs, we pay taxes, related businesses and fields of activity are created around us. Until today, we were practically unprofitable, as we constantly incur costs associated with the development, purchase of equipment and other things. This year we have already made a profit and we cover the losses of previous years, from next year we will pay income tax, and quite decent. This money will be used to develop the social sphere. For example, on the construction of roads, which were not there before. 12 years ago, when I first arrived there, I had to get half a day from one company to another. And now, already finished laying the dirt road, I think, in a year and a half there will be an asphalt road connecting the cities of Uglegorsk and Shakhtersk. Schools, kindergartens are being built, even the ice palace seems to be in plans. Gazprom also allocates money to Uglegorsk because the company works on the island and one of the top managers of the corporation is a native of these places and does not forget the small homeland.

- What do you mean by "social responsibility of business"?

- I believe that everyone has their own responsibility. Someone has a social one, someone has an economic one, someone has a different one. My responsibility is to develop the enterprise. If I only deal with social issues, then I need to go to the administration of the municipality and work there. Of course, this does not mean that we should not help the authorities. We recently built a church, because it was not in the area. And when I asked to show where they had a temple, they took me ... to the former Lenin's room. Blasphemy is simple. Therefore, of course, we built the church, we will open a monument to Sergiy Radonezhsky a few days ago, the mayor of the district has long been nurturing this idea and with our help the residents will receive a monument. Naturally, we do such things - but this does not mean that this is the main direction of our work. We are now negotiating with foreign companies that supply us with equipment, that they put up simulators for training in our technical school for free. Simulators are expensive, cost up to 1 million dollars. I do not know if we'll finish this process to the end, maybe we'll pay a part ourselves. But all the same in the technical school there will be simulators, where people will have the opportunity to learn how to work on Caterpillar or "Komatsu". Then they will be able to find a good job, since specialists who can handle such equipment are paid far from copecks, including at our enterprises. Unless we always write, that the high salary - "under condition of performance of the plan". You can not lure people with big promises, and then disappoint. And it is better that we write on the site that the salary of 60 thousand, and he will get 100 thousand, than he will come to 100 thousand, will get 60 and be upset. We are trying to act correctly.

- Now they say a lot about the fact that we can take advantage of the situation to invite people from Ukraine, who are closest to us in terms of language and mentality of people. Do you work from Ukraine?

- Yes, there were such visitors, as usual workers, and highly skilled. One of them built a conveyor line in the Donbas - not as large as ours, only 6-8 km, But new and modern. We had talks with him before the well-known events in Ukraine, and when conflicts began, he moved to Shakhtersk together with his family, lives and works normally. Employees who moved from Ukraine, we have a lot.

- You, having extensive experience in the coal industry, worked in different regions. If we talk about the authorities of Sakhalin, it is easier or more difficult to interact with them than it was, for example, in Kemerovo or Krasnoyarsk?

“I don’t want pure truth to sound like flattery or duty praise.” But with the administration of the Sakhalin region, we are really very comfortable working, especially now, with the arrival of the new governor. The region has always been deprived of the general background, it all got on the residual principle as the farthest region. Until the gas projects started, there was nothing particularly good here. And now the administration is trying by all means to develop the economy of the region, to diversify it. The governor makes great efforts to this, he always supports promising ideas. And he, too, will obviously not go to questionable deals or collusion - this can be seen with the naked eye. It's just very difficult to praise a person - you have to make excuses right away.

- And what, if we talk about your project, public-private partnership can be expressed? What do you need first of all from the state?

- To be honest, we do not need anything special from the state. The main thing is that it does not interfere with us and gives us the opportunity to develop. To us created a comfortable environment for this and did not allow clerks to fool around. We will now begin to take the land under the conveyor belt and are ready to pay for it. But we all know how long and problematic is the mechanism of land withdrawal from agricultural or forestry. If the state will help us and give the green light - excellent. By the way, we are among the priority projects of the Sakhalin region, so we have already, in fact, been supported. Certainly, we will not give up assistance in subsidizing the loan rate. Well, in the rest, of course, we are counting on our own strength.

- Have you already signed an agreement with the Far Eastern Development Fund?

- We will sign a specific agreement at the end of this year or at the beginning of the next. In addition to us, the Sakhalin Oblast government signed such a document with the fund, according to the "ruble to ruble" scheme. If the fund gives, for example, 2, 5 billion rubles, then the region will allocate the same amount, and without interest. Thus, the interest rate for us will be halved. Let it not be so much of the required investment, but it is important that we are going to implement this project together with the state, it supports it and is interested in its implementation, as it provides jobs, employment, taxes ... The state has already Now "turned to face us", and we are happy about it.

Curriculum Vitae:

He was born 20 September 1967 in Kiev, Ukraine.

In 1988 he graduated from the Kharkov Higher Military School of the Ministry of Internal Affairs of the USSR in the specialty of "engineer-economist", in 1995 - Higher School of Business in Management and Finance, in 2000 he studied at the Siberian State Industrial University in integrated educational System "Mining Academy" on the specialty "Underground mining of mineral deposits".

1984-1993 -
Service in the Internal Affairs Ministry of the USSR and the Russian Federation; 1993-2000 - General Director of Prodcontract; 2000 - Director of OJSC Kuznetsk Ferroalloys (Kemerovo Region); Since January 2001 - Acting General Director of JSC Vostsibugol; In April 2001. The Board of Directors of the company was elected to the post of General Director of JSC Vostsibugol; In May 2001 was elected Chairman of the Board of Directors of JSC Chita Coal Company; Since September 2001, the general director of the Siberian Coal Energy Company Baikal-Ugol (MDM Group), which includes Vostsibugol, Chitin Coal Company, Krasnoyarsk Coal Company, Sakhalin Coal Corporation ", Coal companies of Khakassia; Since May 2002 - Member of the Board of Directors of OJSC Krasnoyarsk Coal Company; Since July 2002 - Chairman of the Board of Directors of OJSC Vostsibugol, since March 2003, President of JSC Siberian Coal Energy Company (SUEK); Since March 2005 the president of LLC "MC" Sakhalinugol "; From August 2013 to the present - the president of OOO Oriental Mining Company »(WGC).