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EastRussia Bulletin: "A-Property" intends to consolidate Elga
The company "A-Property" sent a petition to the FAS to acquire 49% in the management company "Elgaugol" - a share that is currently owned by the company "Ulak-concession" controlled by Gazprombank, according to the next published issue of the EastRussia bulletin.
In the spring of this year, A-Property bought out a controlling stake in the Elga coking coal deposit in Yakutia from Mechel for 89 billion rubles. Last year, an option was signed to acquire 49% from Gazprombank for 45 billion rubles (ten billion rubles more than Gazprombank paid Mechel during the restructuring of the coal mining company's debt in 2016).
Elga is considered to be one of the largest coking coal deposits in the world - its reserves are estimated at 2,2 billion tons. The design level of production at the field is 20 million tons of coal, but at the end of 2019, production amounted to only 4,3 million tons.
In the development of the A-Property deposit, it expects to invest 130 billion rubles, which should allow increasing production to 2023 million tons per year by 45. It is planned to build a mining and processing plant with a capacity of 32 million tons of coal at the deposit (first stage).
Detailed analytics on this and other relevant topics can be found in EastRussia Weekly Newsletter.