China's Shenhua Corp subsidiary Shenhua International and Russian technology and manufacturing company Rostec's Global Resources have signed a memorandum of understanding on the joint development of coal deposits in Siberia and the Russian Far East, Rostec said Thursday.
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It said in a statement that the two companies aim to develop the Ogodzhinsky coal deposit in the Amur region jointly as well as construct the Port Vera coal maritime terminal, near Cape Otkytiy in the Primorsky region.
Global Resources said it had also signed an agreement with the Amur regional authorities earlier in June on cooperation in the development of the Ogodzhinsky coalfield and had agreed to join the port construction project as project coordinator.
The port is expected to have a throughput of 20 million mt/year, with the project set to begin in 2015.
"Construction of Port Vera will contribute to the development of the Far East and the Russian coal industry, as well as expand Russian coal companies' access to the markets of the Asia-Pacific region, while creating new jobs and increasing tax revenues to the budgets of all levels," Global Resources general director Andrey Korobov said in the statement.
The Ogodzhinsky deposit is in the Gerbikan-Ogodzhin coal basin, which has total estimated coal reserves of 1.6 billion mt. The development of the deposit is expected to require $5 billion in investment and is planned to produce 30 million mt/year of coal by 2019.