Japanese cos running out of time to join Elga coal project - Yakutia president
YAKUTSK. Feb 14 (Interfax) - Given the current climate in relations, Japanese companies appear unlikely to join the project to develop the Elga coal deposit, which belongs to the Mechel coal and steel group, Yakutia President Yegor Borisov said.
"In November 2010 during a visit to Japan, I told representatives of the Japanese Foreign Ministry and the Economy, Trade and Industry Ministry that we would give Japanese companies the opportunity to join the Elga project, but they have stuck to the sidelines too long and don't have any time left. The time is fast approaching when it won't make any sense to negotiate on Japanese participation in the project," Borisov said at a press conference on Monday.
Yakutia had offered the Japanese side participation in the Elga project from the very first stage of development, he said. However, Russian investors have now been found for the project, and South Korean companies have expressed great interest.
Tokyo had previously asked Moscow to facilitate the participation of Japanese companies in the Sakhalin-3 gas project and the Elga coal deposit development.
Nippon Steel Corp had expressed interest in the coal project, with a top official at the steel giant saying the company wanted to take a stake in the project. Sumitomo Corp had also expressed interest.
The Elga deposit contains 2.1 billion tonnes of high-grade coking coal. Production is slated to begin this year, when the deposit will yield 1 million tonnes, according to the company's most recently announced production target. Production will rise to 27 million tonnes a year by 2021.
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