EastCoal plans to start up wash plant at Ukrainian mine by 2012
KYIV. Aug 22 (Interfax) - EastCoal, a Canadian company focused on coal production in Ukraine, plans to start up operation of a wash plant for its Verticalnaya mine in Ukraine before year-end, the company said in a press release.
The equipment for the plant, which is being manufactured in the UK, will be shipped to Ukraine in September.
"The plant will initially process coal from the upper, H11 seam, augmented by coal from developments in the lower, H8 seam of the former main mine which is currently being dewatered. In addition, there are a number of dumps close by and it is intended to test these and other potentially profitable sources of raw coal following installation of the plant," the press release says.
The company has commenced negotiations with international financial institutions for long term debt to continue the develop the business, it says.
It was reported earlier that EastCoal plans to begin extracting coal from the mine's northern face, which previously yielded high-grade anthracite coal, early next year. The company expects to raise production to 1.4 million-1.5 million tonnes a year in three-five years, which will put operations on a profitable footing.
EastCoal acquired Verticalnaya in November 2009. The mine's proven reserves total 16.2 million tonnes and the forecast reserves amount to 11 million tonnes. The work to restore the mine will cost an estimated $210 million.