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Northernmost advance-development territory: from tulips to coal and gold

November 30, 2017, 14:27 UTC+3 MOSCOW

The Beringovsky advance-development territory was established by the government’s order in 2015, and it is among the most multi-profile advance-development territories in the Far East

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© Yuri Smityuk/TASS

MOSCOW, November 30. /TASS/. /TASS/. Russia’s northernmost advance-development territory Beringovsky, in Chukotka, reports production of coal and gold and further plans for construction of small vessels and for production of dairy products.

Russia’s President Vladimir Putin after a trip to the Far Eastern Federal District in September ordered the government to look into modernization of the Beringovky sea port, which is a part of the advance-development territory.

In the coming year, the coal turnover would grow there to 500,000 tonnes, and from 2019 - to one million tonnes.

The Beringovsky advance-development territory was established by the government’s order in 2015, and it is among the most multi-profile advance-development territories in the Far East. It features companies working in 47 economic directions. This article by TASS is about the current achievements, about further plans and about long-term projects on development of the country’s eastern advance-development territory (abbreviation in Russian is TOR).

From tulips to gold

The Beringovsky TOR has 24 residents with the total amount of announced investments of 15.4 billion rubles ($264 million). They plan organizing 1,279 new jobs. The spectrum of their work is rather vast.

"TOR’s all residents are active enterprises, and their projects are at different stages," Deputy Governor of the Chukotka Autonomous Region Alesya Kalinova told TASS. "Work continues in production of gold and coal, in fish processing, electricity generation, additional education, water purification and solid waste management, electric-technical measurements and maintenance of electric grids, gas extraction and sale, transportation services, dietary meals, growing indoors vegetables, tulips and potted flowers."

The list of residents in the coming year will have two more enterprises, she continued. Their projects in fish processing and technical service of refrigeration equipment are at the stage of design yet.

However, despite the variety of directions, as of now, only two companies are anchor residents in Beringovksy: those are Beringpromugol (coal production) and Port Ugolny (coal port), which investor is Australia’s Tigers realm Coal.

"Beringpromugol implements a project to produce coking coal at the Amaamsky field, where the announced investments are 6.5 billion rubles ($111 million)," the official said. "In December 2016, coal production began at the Fandyushinskoye Pole field. Port Ugolny is the project to modernize the Beringovsky sea port for bigger coal export during navigations, where the announced investments are 2 billion rubles ($34 million)."

Modernizing Chukotka coastline

Though from July 2017, the companies are supplying coal to the Asia-Pacific Region - China, Japan, Taiwan, modernization of the Beringovsky port continues. The Beringpromugol has ambitious plans - to build up the coal export to one million tonnes a year.

"To 2022, the company plans building up the coal supplies from the Fandyushinskoye Pole field to more than one million tonnes a year," press service of the Russian Ministry of the East’s Development. "Right now, continues the first stage of the investment project, where in Chukotka the Beringpromugol company will put operational by 2020 a new enriching plant."

The company has announced already if the market develops favorably, it may develop further the production - to 8 million tonnes a year. For that, the company plans organizing from the very beginning the outside transport and energy infrastructures - a year-round coal terminal with the stock of 750,000 tonnes in the deep-water Laguna Arinai. The project includes construction of a car and rail roads from the field to the port. Before the year-end, the company plans extracting and exporting to the Asia-Pacific Region of about 200,000 tonnes of coal.

"Further on, the project will be expanding within the borders of the Amaamskoye and Verkhne-Alkatvaamskoye fields," the deputy governor said. "We have made a decision to issue a license for development of the Nadezhny field of the Amaamsky coal deposit with the term to 2037; and earlier we have issued a license on development of the Zapadny area."

According to the official, the recoverable resources of the Beringovsky coal basin are estimated at more than one billion tonnes. The plans for the future are to export from there between ten and twelve million tonnes of coal a year.

Gold residents

The gold-extraction sector is ranked second in terms of attracted investments. At the Beringovsky TOR six companies have the status of "gold residents."

"Six residents work in gold extraction - they announce investments of 6.1 billion rubles ($104 million) and 586 new jobs," the deputy governor said. "The biggest projects are implemented by the KanchalanoAmguemskaya Ploshchad, which continues exploration at the Kanchalano-Amguemskaya area, and the Valunistyi Mine - their common investments are 5.6 billion rubles ($96 million)."

The Kanchalanl-Amguemskaya Ploshchad Company plans producing 350,000 tonnes of ore a year and producing up to 1.5-2 tonnes of gold a year. The Valunistyi Mine Company will extract gold in a pit and now prepares for expanding the production there. The list of "gold residents" also features BeringZoloto, Vostok, Sever, and Intechcoms. The latter is different from the others as it does not develop new deposits, but processes tailings and the so-called "extra-asset stock," which remains from work of previous developers.

Agriculture and education

The involvement of big investors in TOR’s development was an impetus for development of small businesses, experts say. More than a dozen residents of the Beringovskoye TOR are small companies and private businesses. The business of agriculture in permafrost conditions becomes the most popular direction.

"The TOR’s resident Makatrov more than six months earlier began developing the greenhouse business to grow vegetables in Anadyr," the ministry said. "And by this New Year already, the businessman plans receiving there crops not only of tomatoes and cucumbers, but also of tulips."

The only educational resident in the advance-development territory is the Center for Children’s Development. It offers to parents an option to leave their children there for a maximum of four hours -time the center offers educational programs for kindergarten children and for school students. Besides, the specialists plan working with children having development peculiarities.

Asia-bound trend

All products, made at the Beringovsky TOR, have an export potential. The target markets are China, Japan, Taiwan, and South Korea. The local port may become a backbone port of the Northern Sea Route, the deputy governor said.

"The manufactured products may be used not only for the region, but may be supplied to Russia’s other regions and to the APR countries," she said. "The year-round port, which is planned to be built by 2030 in the unfreezing Arinai Bay, will open absolutely new options - the port would become a new backbone base of the Northern Sea Route."

Besides, she continued, the advance-development territory will have in addition a terrestrial form of transportation with the rest of Russia - using the trans-road Kolyma - Omsukchan - Omolon - Anadyr. The road will begin in Anadyr, will cross Chukotka into the Magadan Region and the Sakha Republic. In Chukotka only the distance would be 1,880 kilometers. The construction continues, the first passage of about 100 kilometers is ready.

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