Two bidders for new coal mine in Komi
The Severstal company and the Novolipetsky Metallurgy Plant have submitted bids for the Usinsk coal deposit in the Komi Republic.
The coal deposit which is located near Vorkuta in the northern part of the Komi Republic is part of the rich Pechora coal province. According to Kommersant the deposit has an estimated 227,2 million tons of good-quality ore.
The starting price in the tender is 800 million RUB.
The Usinsk deposit is located near existing infrastructure and processing facilities. The Severstal Group already operated the Vorkutaugol company, which is heavily engaged in mining and processing in Vorkuta, the second biggest city in the republic. Still, the Novolipetsky Metallurgy Plant will not be an easy match for Severstal. The company is owned by the business tycoon Vladimir Lisin.
As reported in the latest Barents Monitoring report for the Komi Republic, coal mining is currently the most profitable industrial sector in the region with a more than 20 percent production increase year-on-year.
It is expected that production at the Usinsk deposit can start in 5-6 years.
