BANK OF CHINA, EN + GROUP AND SHENHUA plan to jointly produce coal in RUSSIA
En + Group, the world#39;s largest coal producer Shenhua Group Corporation and China Development Bank signed a framework agreement for the joint development of coal and infrastructure projects in eastern Russia.
His document was signed by CEO of En + Group Volynets, chairman of Shenhua Group Corporation Zhang Siu and chairman of the China Development Bank Chen Yuan in the presence of Deputy Prime Minister of the Russian Federation Dmitry Rogozin and vice-premier of the People#39;s Republic of China Wang Yang.
Under the agreement, China Development Bank will provide financing of up to $ 2 billion for the implementation of joint projects En + Group and the Shenhua Group coal mining and the construction of related infrastructure in eastern Russia. In particular, the company will:
conduct reconnaissance, to carry out the extraction, processing and refining of coal in Eastern Siberia and the Far East;
build related infrastructure, including railways and roads;
build power plants for power projects in mining and processing of coal;
develop port facilities in the Far East;
create marketing structures for the sale of coal produced to end consumers in China and other Asian countries.
China is the world#39;s largest consumer of coal (over 50% of world consumption) and one of its main importers. The country#39;s coal is constantly growing due to the large-scale construction of new coal-fired power plants, which account for about 70% of the total generating capacity of China. The main suppliers of coal in China today are Australia and Indonesia, plans to actively enter the Chinese coal market were announced by companies from the United States and Canada.
En + Group is developing projects for the extraction of coal from 2008 to date, the Group companies hold licenses for the development of fields with total reserves of more than 4 billion tons of coal yearly production cuts by the Group companies in Eastern Siberia and Kazakhstan is more than 50 million tons of coal. In 2012, En + Group began shipping coal to China and other Asian countries.
`Strategic Alliance En + Group c world#39;s largest coal mining company Shenhua and China Development Bank to implement projects for the extraction and processing of coal in the East of Russia - an important step in strengthening our partnership with China. Russia ranks second in the world in terms of coal, and most of them are located in Eastern Siberia and the Far East, in close proximity to the growing Asian economies, where demand for coal increases. We are pleased to start a partnership and are confident that our joint project will give a powerful impetus to the development of the East Russia #39;, - said General Director of En + Group Volynets.
