The Eurasian Development Bank (EDB) and “Bogatyr Komir” LLP have signed a loan agreement providing for the financing of the Bank's investment program for the modernization of the coal mining process at the Bogatyr open-pit mine. The document was signed: on the part of EDB – Andrey Belyaninov, Chairman of the Board, on the part of “Bogatyr Komir” LLP – Murat Abdygulov, Director General and Nikolay Korsakov, First Deputy Director General – Chief Financial Officer.
As per the agreement terms, the amount of funding provided by EDB for the program will be 196,9 million Euros. The credit line will be provided for a period of 11 years.
In accordance with the agreement, the funds will be directed to the investment project at the "Bogatyr" mine, which assumes the upgrading of production by switching to a cyclic-flow coal mining technology. This will increase the total production capacity up to 50 million tons, improve the quality of final products, reduce the cost of raw materials, and reduce the negative impact of production on the environment. It is planned that part of the finished products from Kazakhstan will be supplied to Russia.
"The project is intended to support the development of the country's electricity sector," said Andrey Belyaninov, Chairman of the EDB Board. - It is also important for EDB that this project has a great integration effect. Its implementation will enable to increase the efficiency of coal mining, maintain production volumes for a longer time and support the growth of the volume of trade between Russia and Kazakhstan. "
It is already the third EDB’s loan agreement with Bogatyr Komir, one of the largest coal mining companies of Kazakhstan, in addition to the credit lines opened by the EDB for the coal mining company in December 2011 and November 2013. Then the Bank transferred circa 50 million USD to the accounts of “Bogatyr Komir” LLP with a maturity of 7 years and 25 million USD with a similar maturity, respectively.
According to the Bank's experts, the project will contribute to an increase in output in the economy through the provision of preparatory construction and installation works amounting to 60,7 million USD. In the long term, the output is planned to increase by an average of 75 million USD per year in the first 10 years of the project through increased coal production, as well as an increase in mutual trade between the EDB member countries owing to to coal exports of an average of 27 million USD per year. In addition, the implementation of the Project will help to mitigate the negative impact on the environment by placing the rock inside the open-pit mine.
“Bogatyr Komir” LLP is the largest coal mining company in Kazakhstan, accounting for about 60% of all coal produced in Ekibastuz Coal Basin and about 40% of total coal production in the Republic of Kazakhstan. During the operation, more than 1.5 billion tons of coal was mined. The main activity is the extraction of hard coal by the open method in the Ekibastuz coal basin on the "Bogatyr" open-pit mine . The company is one of the main employers in Pavlodar region, providing constant employment for more than 6 thousand people.
The Eurasian Development Bank (EDB) is an international financial organization established by Russia and Kazakhstan in January 2006 to promote the development of the market economy of the participating countries, their sustainable economic growth and the expansion of mutual trade and economic relations. The authorized capital of EDB is 7 billion US dollars. Member States of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation and the Republic of Tajikistan.