Coalstar to start mining coal at Bogatyr in 2023, cost of project grows to 66 bln rubles

NOVOSIBIRSK. Nov 2 (Interfax) - Razrez Bogatyr LLC, a division of Coalstar LLC, plans to start mining coal in 2023, Novosibirsk Region Deputy Governor Sergei Syomka said on Wednesday, remarking that the cost of the project has grown to 66 billion rubles from 56 billion rubles.

"Razrez Bogatyr is a new license that the Natural Resources Ministry of Russia auctioned off in the year before last. The amount of investment this year is expected to be about 6 billion rubles. [The overall cost has] grown to 66 billion rubles. It will be revised, of course," Syomka said at a press conference.

Land is being allocated and the deposit infrastructure development plan is being implemented, he said.

The company plans to mine the first 300,000 tonnes of anthracite next year, Syomka said. This amount is already planned in the delivery schedule. The open-pit mine's total capacity will be 10 million tonnes per year, as planned.

Coalstar secured the rights to develop Bogatyr, Novosibirsk Region's largest anthracite deposit, in June 2021. The mine's design capacity is 10 million tonnes of enriched anthracite per year. Production is now scheduled to start by the end of 2023 within the area of priority development.

In March 2022, the cost of the project was estimated at 56 billion rubles. The launch of production was planned for the second quarter of 2022, with the mine expected to reach output of 10 million tonnes per year by 2032.

The project includes building a washing plant, administrative and amenities complex, repair and warehouse facilities, and power and railway infrastructure over a total of 309 square km in the Iskitimsky district.