EVRAZ Launches Construction of a New Coking Coal Mine Yerunakovskaya-VIII
18 August 2011 – EVRAZ Group S.A. (LSE: EVR) (the “Company”) launches construction of a new coking coal mine Yerunakovskaya-VIII within its existing coal mining division Yuzhkuzbassugol (Kemerovo region, Russia). The total investment in the project will be c.17 billion roubles (approximately US$590 million) spent over the next three years. The coal mine is planned to start operations by mid-2013. By the end of 2014, the mine is expected to reach a total production capacity of 2 million tonnes of raw coking coal per annum.
Mine development will start from the Yerunakovskiy-VIII deposit with the potential for further expansion into the Yerunakovskiy-Vostochnyi deposit. Joint development of the two deposits will provide long-term stable mining operations and a guaranteed supply of high-quality hard coking coal. The estimated reserves of the new areas being developed are in excess of 85 million tonnes.
The mine will be built in accordance with the highest standards of safety, health and environmental protection. It involves preliminary and in-seam methane drainage as well as construction of wastewater treatment facilities. Additionally, the Company will build a new handling capacity at Kazankovskaya railway station and a new local motorway for coal transportation.
This project is in line with EVRAZ’s strategy to further develop its coal mining operations. Construction of the new mine will increase the level of vertical integration, providing its steelmaking facilities with high quality coking coal.
For further information:
VP, Corporate Communications
+7 495 937 6871
Director, Investor Relations
+7 495 232 1370