The Indian Tata Power, the world's largest energy holding, has officially announced that it will consider alternative options for coal mining this year after the recent decision of the company to leave its project in the Russian Kamchatka Territory.
As part of the Kamchatka project, the company planned the development of the Krutogorovskoye coal field, which is located in the Sobolevsky area of the Kamchatka Territory and at the initial stage was considered as very promising by the company.
In fact, Tata Power showed interest in Kamchatka in 2014. In 2017, it received a license for the production of at least 8 million tonnes of coal per year on the basis of the field. The balance reserves of the Krutogorovskoye field are estimated at 258 million tons of coal, while the predicted reserves - 1,127 million tons. Investments in the project were estimated at US$560-600 million. At that time, it was the largest Indian investment in Russia.
The Russian government, from its side, has promised the Indian investor to provide all the needed assistance during implementation of the project, however, all these plans were never implemented.
As the Indian company said, the pandemic and associated with it restrictive quarantine measures prevented implementation of the exploration program, associated with the development of the field.
As part of initial plans of the company, most of the future coal output should have been supplied to India for the needs of the Coastal Gujarat Power Ltd (CGPL) thermal power plant, however, due to the decline of global coal prices, Tata Power's strategy was revised in favor of increasing investment in renewable energy and reducing the number of coal projects.
By: Eugen Gerden