The Russian state corporation Rostec together with its local partner A-Property are considering massive investments in the development of
Ogodzhinsky coal field, one of Russia’s coal fields in the Amur region with the reserves of 386 million tons.
In regard of A-Property, its main coal asset is the Elginskoye deposit with reserves of 2.2 billion tons of coking coal. The company plans to invest 130 billion rubles. to increase production from the current 5 million tons per year to 45 million tons in 2023.
As for Ogodzhinskoye field, its development began in 2020 and, so far, the production volumes have been insignificant. However, it is planned it’s annual output will grow up to 10 million tons by 2023. At the same time, in order to export this volume, additional railways must be built.
Over the years, there were various options for the development of the field. In 2014, Rostec signed a memorandum on the development of the Ogodzhinskoye field with China's Shenhua. The plans included the construction of a thermal power plant and a power transmission line for exporting coal to China, as well as building of the port of Vera. The head of Rostec, Sergei Chemezov, at that time estimated investments at US$8-10 billion. However Shenhua decided to leave the project.
According to the Russian Kommersant business paper, total investments in Ogodzhinsky coal field may amount to RUB 107 billion for 20 years.
By: Eugen Gerden