OMZ Group and OAO UK Kuzbassrazrezugol have entered agreement on long-term cooperation

OMZ Group and OAO UK Kuzbassrazrezugol, the largest Russian coal producer, have signed a long-term agreement program for 2010-2015.

The program involves the delivery of 23 new excavator models produced by OOO IZ-KARTEХ to OAO UK Kuzbassrazrezugol, including: 12 EKG-18R shovels with 18 m3 scoops, 8 EKG-32R shovels with 32 m3 scoops and two EKG-50 shovels with 50 m3 scoops. The parties have agreed that the excavators will be supplied under financial leasing provided by ZAO Gazprombank Leasing, Gazprombank’s designated leasing company.

The long-term agreement program marks a new stage in many years of mutually beneficial cooperation between OMZ Group (Gazprombank’s manufacturing assets) and mining facilities of OOO UGMK-Holding.

It should be noted that in 2008 OAO UK Kuzbassrazrezugol and OOO IZ-KARTEХ have signed an agreement which involves OAO UK Kuzbassrazrezugol acting as a base facility for field testing of new OOO IZ-KARTEХ machinery. Within the framework of the agreement Taldinsky coal mine was supplied with new EKG-1500R shovel with a 18 m3 scoop. Such excavators were not produced in Russia before. EKG-1500R testing began in January 2009; the model was commissioned in May 2009. During the test run the shovel has reached maximum productivity of 480 thousand m3 of ore per month.

In the end of 2009 IZ-KARTEХ and OAO UK Kuzbassrazrezugol have signed a contract for the delivery of two EKG-18R and one EKG-32R shovel (it is the most powerful “direct mechanical shovel” ever produced in USSR or Russia). This machinery will be delivered in the beginning 2011 also under financial leasing from ZAO Gazprombank Leasing.

The new stage of partnership allows the largest Russian coal mining facility to implement its production development and machinery upgrade programs and facilitates the development of new large excavator models by OMZ Group and promotes the Russian mining equipment on the market.

OMZ Group is one of the leading heavy industry companies specializing in engineering, production, sales and service support of equipment for nuclear, oil and gas, mining industries, as well as special steel production and industrial services. OMZ Group’s facilities are located in Russia and Czech Republic. The Group is controlled by Gazprombank.