Japanese investments in Tuvan coal deposits
28.07.2010 (17:12) | RUVR The Voice of Russia
Japan’s business community seems to be taking a keen interest in the Russian market which is becoming increasingly attractive to foreign investments, as recognized by Tokyo.- - - - - - - - - - - - - - - -
Long-term prospects for Japanese business in Russia are beyond question by now, while raw materials prevail in the structure of Russian export and the share of Russian oil and coal in Japan’s energy imports is on the increase.
One of the world’s largest coking coal deposits is the field Elegest located in the Siberian Republic of Tuva, with approved reserves amounting to nearly one billion tons. Ranking among the top steel producers worldwide, Japan is facing high demand for coking coal and the interest of its second-largest trading company Mitsui in the Siberian deposit is therefore perfectly explicable.
Two years ago, Mitsui got a priority right of acquiring a share in the Elegest coal field development project and partially sponsored its technical and economic substantiation. Besides, the company intends to launch a joint venture with Russian Railways to ensure freight traffic between our two countries via the Trans-Siberian Railway.
The dialogue with Mitsui moved to a new level in June this year after the project’s feasibility study was completed. Still, before investing in the Elegest deposit, the Japanese delegation led by General Manager of Mitsui’s Ferrous Raw Materials Department Yukio Takebe held an inspection of the field considering all its technical features, and examined the 460 km railway line Kyzyl-Kuragino connecting with the Trans-Siberian Railway. Deputy Director General of Yenisei Industrial Company (YIC) Alexander Brokert has this to say:
"Japanese businessmen are always delicately handling any investment issue, particularly in Russia, where administrative barriers are still high and difficult to overcome. But we have acquainted our colleagues with all technical features, advantages and disadvantages of the project. It is quite natural that we are facing some challenges, since the Republic of Tuva had no experience in deep mining before."
What is special about the Elegest deposit, is its coal strata depth - up to 11 meters. This implies the introduction of techniques which are now successfully used just by several companies in the world, Alexander Brokert says.
"For the time being, thick strata coal extraction techniques are not widely applied, with only China actively using them. Yenisei Industrial Company has held a number of working meetings with Chinese businessmen to discuss a possible purchase of all necessary equipment and their country’s full-fledged involvement in our project."
Meanwhile, Japan’s business community seems to be taking a keen interest in the Russian market which is becoming increasingly attractive to foreign investments, as recognized by Tokyo. And this interest is not confined to the Elegest field solely.
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