Listvyazhnaya Coal Preparation Plant Opens up New Prospects

According to estimates, by the end of 2007, the Listvyazhnaya coal preparation plant will produce about 1 mln. tons of high calorific steam coal with low ash content. Such coal is in high demand in the heat power industry and in non-ferrous metallurgy.

The plant is to reach the design capacity of 5.1 mln. tons of finished products, with 6 mln. tons of coal loaded, in 2008.

To supply the plant with the Company’s own steam coal, Belon Group is currently increasing production of the “D” grade coal at the Listvyazhnaya mine. In 2007, the Listvyazhnaya mine will produce 2,700,000 tons of coal. In the long term, due to the mine’s modernization, the Company is planning to increase production volumes up to 6.5 mln. tons, and to ensure full load operation of the plant.

Today, the Listvyazhnaya coal preparation plant is one of the best-equipped enterprises in Kuzbass. All the operations at the plant are performed using modern reliable and safe equipment of the leading world producers: KHD Humboldt Wedag GmbН (Germany), Andrits (Austria), Warman (Great Britain). The coal preparation plant is unmatched also for its automation level—the entire plant management system is automated.

According to President of Belon Group A.P. Dobrov, preparation of steam coal will allow the Company to approach more aggressively the European markets, which place high demand on the quality of products supplied. «For the amount of steam coal preparation, the Listvyazhnaya coal preparation plant has no parallel in Russia. We are the pioneers. And we shall be followed by other companies,” he said. “The plant has an immense potential. We can reach the ash content of less than 2%, and this product is in great demand everywhere—take for example chemical industry or medicine. The Company already has partners which are willing to sign five-year contracts for the total volume of the products that we have not even started to produce yet.”

At the same time, Governor of the Kemerovo region A.G. Tuleyev mentioned the economic value of coal preparation for the region, as well as the importance of producing quality end product instead of raw coal, and of investing in coal preparation.

The total investment in the construction of the Listvyazhnaya coal preparation plant amounted to nearly 3 billion rubles. This is one of the key investment projects of Belon Group. Due to the major investment program, the Listvyazhnaya coal preparation plant was built by the Company in an extremely short time—16 months.

Steam coal preparation is a part of the development strategy of Belon Group.