Russia’s Baisarov buys Elegest coal license for starting price
MOSCOW, Apr 26 (PRIME) -- Russia’s Tuva Energy Industrial Corporation (TEPK), controlled by Russian businessman Ruslan Baisarov acquired a license to develop the Elegest coal deposit in the Tuva republic for a starting price of 547.835 million rubles, TEPK spokesperson told PRIME Friday.
The company was the only bidder for the license and the tender was cancelled. Under the terms of the tender, the license might be sold to the sole bidder taking into account the participant’s feasibility study and starting price offer.
The deposit’s balance reserves amounted to 775.718 million tonnes under A+B+C1 categories as of January 1, 2012.
Initially, a road linking the Elegest coal mine with the Trans-Siberian Railway was to be built on the basis of a public private partnership by Tuva republic’s former parliamentary member Sergei Pugachyov’s Yenisei Industrial Company. However, the government refused to provide its part of the financing, as the company – the owner of the license for the field – did not fulfill its obligations. The total cost of the road’s construction was estimated at 159.5 billion rubles.
Yenisei Industrial Company was stripped of the license in December 2012. Control under the Yenisei Industrial Company returned to Pugachyov in late 2012, after businessmen Baisarov and Igor Altushkin left the company as it was overburdened with significant debts, which were previously unknown.
(31.3169 rubles – U.S. $1)