Moscow, 19 December 2011. The Eurasian Development Bank (EDB) and Bogatyr Komir signed a loan agreement, under which the Bank will provide investment finance for Kazakhstan’s largest coal producer. This will be a US $50 million loan for up to seven years to purchase up-to-date equipment and machinery. The settlement bank is Halyk Bank of Kazakhstan.
“The project has significant economic and integration effects,” Gennady Zhuzhlev, Deputy Chairman of the EDB Executive Board, said. “It is aimed at developing and upgrading the production capacity of the Russian-Kazakh company with a view to increasing coal supplies to Russian and Kazakh energy enterprises that have been traditionally the main market for Bogatyr Komir’s products.”
The increase in coal supplies is expected to advance the trade between Russia and Kazakhstan by US $30 million a year. In addition, Russian companies will supply about 80% of equipment for the project (worth approximately US $40 million).
The company’s gross output is expected to increase by about US $46 million a year. The additional output in related industries can approximate US $42 million a year. Over 200 permanent jobs will be created.
Additional Information
Bogatyr Komir LLP is Kazakhstan’s largest coal producer accounting for about 70% of all coal mined in the Ekibastuz coal basin and about 45% of Kazakhstan’s total coal production. More than one million tonnes of coal have been produced to date. The company’s key business is open-pit coal mining at the Bogatyr mine in the Ekibastuz coal basin.
