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Russia and China to work on joint mining equipment plant in Yakutia

YAKUTSK, July 13. /TASS/. A Russian-Chinese plant for assembly of mining equipment will be organized at the South Yakutia advance-development territory, Russia's Ministry of East Development said on Thursday.

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"We consider organizing an enterprise jointly with our Chinese partners, an assembly facility for open mining," Director General of the Kolmar Company, a resident of South Yakutia, Sergei Tsivilev said. "South Yakutia is an advance-development territory, a unique region of 414 square kilometers - more than territory of Japan. It has unique deposits of coking coal, iron ore and rare earth metals, mineral fertilizers."

Kolmart jointly with Chinese counterparts - state-run AVIC International and Techgart Beijing Engineering Limited - are building mining plants Denisovskiy and Inaglinskiy in Yakutia with the output of 6 million tonnes and 12 million tonnes respectively. The investments in the Denisovskiy plant are almost 2.9 billion rubles ($48.3 million), and the joint investments in the Inaglinskiy plant are about 25 billion rubles ($416 million).

The Minister Alexander Galushka said "the projects, initiated by the Kolmar Company, are big and contain many stages, those projects require support." "The regime of advance-development territory will favor expanding the projects, building of new facilities, and having new jobs," he continued. "They will enjoy tax benefits."

One of the clients of the Ingalinskiy plant's coal product would be China's BAOSTEEL Group. The year-long contract on supplies of coal concentrate to Chine is for 240,000 tonnes. The parties consider having a contract on supplies of the concentrate from QII 2018 in the amount of 1.5 million tonnes.

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