Uzbekugol held on February 20 a press conference titled ‘Levels of perspective specialty development’ to inform media on the work done under the Cabinet resolution ‘On additional measures for improvement of coal production supply to the population and budget organizations of the Republic’.
Uzbekugol, a part of Uzbekenergo, has been mining and selling coal for over 69 years. Of 5.7 billion tons of coal, only 1.9 billion tons have been explored.
Uzbekugol’s agencies mine 4 million tons of coal per year, with 85% supplied to the energy sector. The population and budget and municipal sectors are the main consumers.
The resolution provides for 84 coal warehouses to be built in the regions and equipped with briquette-building machines.
The project, costing 45.4 billion soums, will be financed by a 2-year 7% credit by the People’s Bank.
Apart from pushing briquette production to 800,000 tons, retail price slumped by 13% to 126,400 soums per 1 ton, as Uzbekistan Railways slashed 50% of its transportation price until March 1.
Under the newly adopted draft Coal Industry Development and Modernization Program 2017-2021, $690.5 billion will be invested into 6 projects. The funds are as follows: $87.5 million – the capital of coal companies; $155.6 million – credits by regional commercial banks; $68.7 million – credits from the Reconstruction and Development Fund; $378.7 million – China’s soft loans to SCO member states.
The investment projects include: Shargunkumir modernization, a $105.5 million project with a Cabinet-approved feasibility report; Angren mine construction, an estimated $165 million project with the feasibility study in progress; Nishbash mine construction, an estimated $175.2 million project currently under examination; equipment upgrade, an estimated $170.2 million project involving the purchase of mining equipment; Uzbekugol production capacity support, a $15 million project to buy parts for mining equipment; railway transport modernization, a $59.6 million project to buy locomotives, dumpcarts and others.
Thanks to the projects, the stripping works in 2017 are expected to reach 22.3 million cubic meters, with 26.8 million in 2019 and 27.8 million in 2021.
If in 2016 surface mining brought in 3.6 million tons of coal, 2017 will bring 3.72 tons. Up to 3.97 tons of coal are expected in 2019 and 4.14 in 2021.
The total of coal produced will rise from 3.87 million tons in 2016 to 3.92 million tons in 2017, 4.78 million tons in 2019, and 11.67 million tons in 2021. (UzReport/Ukrainian metal)