The high-quality hard coal mined in the Kemerovo region (Kuzbass) from seven underground mines and two open pits and processed at four washing plants is mainly exported, being favourably positioned logistically to serve both European and Asian markets.
Most of the coal produced by SUEK in Kemerovo has a calorific value of 5,800-6,100 kcal/kg and is served to power generating companies in Europe and Asia. The premium-quality coal concentrate from the Kirova mine is sold as semi-soft coking coal to the iron and steel industries.
Coal with a calorific value of 5,000-5,700 kcal/kg is mainly supplied to Russian power generation companies, including Siberian Generating Company (SGK).
Kirova underground mine
Komsomolets underground mine
Polysaevskaya underground mine
Rubana underground mine
Taldinskaya-Zapadnaya 1 underground mine
Taldinskaya-Zapadnaya 2 underground mine
Yalevskogo underground mine
Zarechny open pit
Kamyshansky open pit
Kirova mine WP No.1 and No.2
Komsomolets mine WP
Polysaevskaya mine WP
Taldinskaya-Zapadnaya 1 mine WP
In 2017, we rolled out capacity development projects aimed at increasing the efficiency of export-quality coal production:
Launching new and highly productive mining equipment at the Yalevskogo and Taldinskaya- Zapadnaya 2 mines;
Commissioning a new site – Magistralny – at the Rubana mine;
Improving loading capacities of the Taldinskaya-Zapadnaya 1 mine and plant, Taldinskaya-Zapadnaya 2 mine and Zarechny open pit;
Continued upgrading of Kirova and Polysaevskaya plants;
The increase in the capacity of the Zarechny open pit up to 6 Mt per year.
Distance to ports in far-eastern Russia – 5,450-6,000 km Distance to Murmansk Commercial Seaport – 4,750 km Weighted average distance by rail to our Russian customers – 264 km in 2017
Production in 2017:38.2 Mt Hard coal
Our units in Khakasia produce premium hard steaming coal with a high calorific value. Half of the coal produced is exported to Europe and Asia.
SUEK’s production units in Khakasia are located in the Minusinsk basin. Hard thermal coal is mined from three open pits. SUEK aims to increase sales of washed, sized coal with a calorific value of 5,500-5,700 kcal/kg from Khakasia to the Atlantic region , as this type of coal is sold at a premium to un-sized thermal coal.
Our largest Russian customers are power plants, including SGK and coal distribution companies, which supply households and public utilities.
Izykhsky open pit
Chernogorsky open pit
Vostochno-Beisky open pit
The company operates three coal-sizing facilities in the region.
In 2017, we focused on increasing our share of export-quality coal and environmental initiatives, including:
Developing the Chernogorsky open pit and washing plant;
Constructing water treatment facilities at the Vostochno-Beisky open pit (stage 1).
Distance to the ports in far-eastern Russia – 4,950 km Distance to Murmansk Commercial Seaport – 5,250 km Weighted average distance by rail to Russian customers – 1,497 km in 2017
Production in 2017:13.0 Mt Hard coal
The brown coal produced from our Krasnoyarsk open pits is supplied solely to Russian markets.
Our production units in Krasnoyarsk are situated in the Kansk-Achinsk basin, where we mine from three open pits. The coal is supplied principally to power stations and public utilities within the region. These mining operations are relatively simple and low cost due to limited overburden thickness, which results in the lowest stripping ratio among SUEK’s production units. The combination of seams up to 58 metres thick, soft overburden and flat gradients, allows us to use bucket-wheel excavators which load directly onto railway wagons or conveyor belts.
Borodinsky open pit
Berezovsky open pit
Nazarovsky open pit
The company operates two coal-sizing facilities in the region.
In 2017, we carried out major development projects aimed at ensuring production safety:
Upgrading the electrical centralisation at Ugolnaya station at the Borodsinsky open pit;
Upgrading electric excavating equipment;
Equipping excavators, tractors and bulldozers with automatic fire extinguishing systems.
Distance to the ports in far-eastern Russia – 4,520-5,180 km Weighted average distance of rail deliveries from these mines to Russian customers – 670 km in 2017
Production in 2017:27.6 Mt Brown coal
In Buryatia we extract high-quality hard coal from Tugnuisky open pit. Virtually all the coal produced here is exported to Asia.
The Tugnuisky and Nikolsky open pits in Buryatia use modern equipment and employs sophisticated planning, operational and management systems. Coal from the open pits is washed at the Tugnuisky washing plant, which has an annual capacity of 10.3 Mt. Washing reduces ash content from 28% to 14% and increases calorific value from 4,600 kcal/kg to 5,650 kcal/kg.
Tugnuisky and Nikolsky produce low-nitrogen hard coal, which meets the requirements of Japanese power utilities and the Group aims to increase sales to Japan in the future. Part of coal exported from Buryatia is delivered directly to China by rail across the Russian-Chinese border; the remaining coal is sold to Russian power plants and utilities.
Tugnuisky open pit
Nikolsky open pit
The company operates one coal-sizing facilities in the region.
In 2017, key capacity-development projects included:
Further developing the Nikolsky open pit, including the purchase of additional excavating equipment and dump trucks;
Beginning construction of a new washing module at the Tugnuisky washing plant.
Distance to the ports in far-eastern Russia – 3,500-3,700 km Distance to Murmansk Commercial Seaport – 3,500-3,700 km Weighted average rail distance to Chinese customers – 702 km in 2017
Production in 2017:13.6 Mt Hard coal
Historically, Zabaikalye pits produced only brown coal, but in 2012 we started to develop the Apsatsky coking coal deposit.
SUEK mines coking coal at the Apsatsky coalfield, located 40 km from the Baikal-Amur Mainline (BAM) railway. This valuable, mid-volatile coal is in high demand both in Asian coking coal markets and in Russian metallurgical markets.
In Zabaikalye SUEK also mines brown coal at two open pits— Kharanorsky and Vostochny — predominantly for supply to nearby power stations.
Apsatsky open pit
Kharanorsky open pit
Vostochny open pit
The company operates two coal-sizing facilities in the region.
In 2017, our main project objectives in Zabaikalye were to increase the efficiency of mining equipment. We switched to higher capacity excavators and dump trucks, and optimised machinery maintenance and repair processes in order to increase productivity.
Distance between Apsatsky coalfield and Russia’s far-eastern ports – 2,550-2,950 km Weighted average distance by rail from Apsatsky open pit to Russian customers – 2,772 km in 2017 Weighted average distance by rail from Kharanorsky and Vostochny open pits to Russian customers – 225 km in 2017
Production in 2017:
0.7 Mt Coking coal
4.5 Mt Brown coal
Coal produced in Khabarovsk is known as ‘Urgal’ coal, and is primarily supplied to the Asia-Pacific region.
The Group’s mining operations in Khabarovsk are located at the Urgal deposit in the Bureinsky basin. The Bureinsky open pit, the Severnaya underground mine and the Pravoberezhny open pit launched in 2017 produce hard coal. This coal is washed at the Chegdomyn washing plant and a processing facility at the Bureinsky open pit, which increases its calorific value from 4,300 kcal/kg to 5,850 kcal/kg. SUEK supplies coal from Khabarovsk mines primarily to China and South Korea. The proximity of the Urgal assets to our Vanino Bulk Terminal represents a significant competitive advantage in terms of ease and cost of transportation. Mines in this region also supply coal to Russian power generation customers located in the Khabarovsk and Primorye regions.
Severnaya underground mine
Bureinsky open pit
Pravoberezhny open pit
Washing Plant and Processing Facility
Processing facility at Bureinsky open pit
During the year we paid particular attention to environmental issues at the Urgal deposit and began construction on a number of new water treatment facilities.
Distance to Vanino Bulk Terminal and other far-eastern Russian ports – 980-1,560 km Weighted average distance to Russian customers – 1,028 km in 2017
Production in 2017:6.6 Mt Hard coal
Our Primorye mines are located close to Russia’s eastern border, which generates major savings on transportation costs.
Our assets in the Primorye region are located in the Pavlovsky brown-coal basin and the Lipovetsky hard-coal deposit. SUEK’s Primorye mines are situated near Russia’s eastern coast, which generates significant savings on transportation costs when supplying coal to Asia-Pacific markets. In 2017, the company began the development of the Nekkovy open pit, which will produce hard coal with a calorific value of 4100 kcal/kg. . This coal will be processed at a dry washing facility.
Nekkovy open pit
Novoshakhtinskoye, comprising Pavlovsky open pit and Severnaya Depressia open pit
Dry washing facility at the Nekkovy open pit
In addition, the company operates one coal-sizing facility in the region.
Distance to far-eastern Russian ports – 315 km Weighted average distance by rail to Russian customers – 263 km in 2017
Production in 2017:
0.07 Mt Hard coal
3.5 Mt Brown coal
The Group operates one of the largest rail fleets in Russia. Railway transport is crucial to the coal production and distribution chain.
48,200MONTHLY FLEET OF RAIL CARS INVOLVED IN TRANSPORTATION OF COAL
Railway transport is crucial to the coal production and distribution chain. In 2017, SUEK’s coal constituted 21% of the total coal cargo conveyed on Russian railways, which are operated by the state monopoly Russian Railways.
SUEK operates one of the largest railcar fleets in Russia. We also run about 190 locomotives and have 16 dedicated loading stations. Our rail system provides efficient connections between the national rail network and the company’s mines and port facilities. In 2017, the company increased the fleet of innovative railcars under management by 2,536 units to 15,664 units.
Vanino Bulk Terminal
The modern Vanino Bulk Terminal is our key export gateway from Russia to the Asia-Pacific markets.
100%equity ownership interest in Vanino Bulk Terminal
19.5 Mtshipped through the port in 2017
24 Mtannual port capacity target
Located on Russia’s far east coast, our Vanino Bulk Terminal has direct access to two independent main railway lines — Trans-Siberian and Baikal-Amur Mainline (BAM) — which connect Vanino to the whole of Russia.
The port was built in 2008 specifically for the shipment of our coal, providing the shortest route to end users in countries including China, South Korea, Japan and Taiwan.
In 2017, SUEK completed the development of the external railway infrastructure at the Vanino Bulk Terminal, which has increased annual transshipment capacity to 24 Mt. We also completed the first stage of cleaning and sorting equipment upgrades to improve the quality of coal cleaning and sizing. In addition, to enhance environmental safety at the terminal we installed new anti-dust equipment, including an automatic air monitoring system, an additional pile spraying system, and a dust suppression system in the car dumper hall. We also procured dust suppression equipment for stacker-reclaimers.
Murmansk and Maly Port Commercial Seaport
SUEK Group is one of the major shareholders at Maly Port and at Murmansk Commercial Seaport
14.6 Mtshipped through Murmansk Commercial Seaport in 2017
2.9 Mttonnes shipped through Maly Port in 2017
SUEK holds 97.1% of voting shares at Murmansk Commercial Seaport and has a 49.9% shareholding in Maly Port.
Murmansk Commercial Seaport provides access to the Atlantic Ocean and links to ports in Western Europe, the Mediterranean and on the eastern seaboard of the US. In 2017, SUEK shipped 14.6 Mt of coal through Murmansk to Atlantic countries, including Germany, the Netherlands, Morocco and Turkey. In 2017, the company continued to implement the development programme:
Installing new cranes;
Further refurbishing the first cargo district, including the construction and installation of stationary dust-suppression systems;
Completing the reconstruction of the southern neck of the Murmansk railway station;
Building treatment facilities at the second cargo district;
Undertaking other investment activities to reduce impact on the environment.
In terms of auxiliary businesses, Murmansk Commercial Seaport also provides bunkering and coal-cleaning services, and supplies fresh water to ship crews.
Maly Port is located in the Primorye region in far-eastern Russia and in 2017 SUEK shipped 2.9 Mt through this port to Asia-Pacific customers, mainly in Japan, South Korea, China, Taiwan and Vietnam.
SUEK Group’s expanding sales network ensures close cooperation and long-term relationships with consumers in the Russian, Atlantic and Pacific markets.
In Russia, SUEK sells coal to large industrial companies and energy providers as well as to smaller customers. The commercial department of JSC SUEK manages the sales function of our production units, servicing customers directly within Russia.
International coal trading and sales are conducted by SUEK AG (based in Switzerland), whose main role is to maximise the efficiency of coal sales and secure the company’s position in the international market. We achieve sales goals through our own network of branch and representation offices and subsidiaries registered in jurisdictions of strategic importance, such as Poland, China, Japan, Taiwan, South Korea, Indonesia, Lithuania, Spain, Vietnam and the US.
SUEK AG determines market strategy in terms of international coal sales, searches for coal buyers and builds long-term partnerships with them. It studies overseas markets, including information about coal producers, competitors, customers and logistics. The company also attracts credit resources in the European markets to help fund its trading activities, as, being a Swiss resident, it has permanent access to the capital markets.