MOSCOW, Dec 16 (PRIME) -- Russia’s Elgaugol has signed an agreement with China’s GH-Shipping to create a joint venture to promote and sale coal from the Elga coal field in China, the field’s owner company A-Property said in a statement late on Tuesday.
“The joint venture will promote coal from Elga on the Chinese market, ensure imports of the Elga coal and its compliance to customs regulations, cooperate with Chinese state agencies, and search potential ultimate customers,” the statement read.
Elgaugol and GH-Shipping expect coal exports to stand at 1–1.5 million tonnes in 2020, 15–18 million tonnes in 2021, 20–24 million tonnes in 2022, and 30 million tonnes in 2023 with a further gradual increase to 50 million tonnes per year.
Elgaugol CEO Alexander Isayev said that exports of coking coal from the Elga field will allow China to replace a significant amount of similar-quality coal from Australia and the U.S.
“To promote Elgaugol products in China and to ensure unobstructed imports, we chose Chinese company GH-Shipping as our partner. Activity of the joint venture will augment our trade turnover of more than U.S. $5 billion per year significant, which is important taking into account the task that leaders of Russia and China set previously to increase mutual trade to $200 billion,” Isayev said as quoted by the company.
Elgaugol, Elga-Doroga, and Elga-Trans develop the Elga coal field, Russia’s largest field of coking coal. A-Property of businessman Albert Avdolyan owns 100% in the companies, and expects coal production at the field to rise to 45 million tonnes per year in 2023 from the current figure of 5 million tonnes.
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