Investment in Vorkuta coal mining development planned at $694 million

Business & Economy March 18, 9:10

The project's implementation is due in 2035

SYKTYVKAR, March 18. /TASS/. Development of coal mining in the Komi Region's Vorkuta, the construction of a chemical complex, and infrastructures' upgrade are key projects for Vorkuta, one of the Russian Arctic's 16 backbone settlements. The project to build up coal production at the Vorkutaugol city-forming enterprise is estimated at 56.2 billion rubles ($694 million), the Komi governor's administration told TASS.

"The long-term development plan identifies as a key investment project the development of coal production at the Vorkutaugol Joint Stock Company - reconstruction and construction of new mines, where the investment is planned at 56.2 billion rubles, and about 600 new jobs will be created. The project's implementation is due in 2035," the administration said.

Another large-scale project is to build the Vorkuta Chemical Complex. The project's initiator, the Azot Company, plans to build a chemical plant to produce nitrogen-containing fertilizers. The project will offer about 1,500 jobs and will attract more than 200 billion rubles ($2.5 billion) in investment. The project's implementation is planned for 2031.

Given that the long-term development plan is the main tool for implementing the Vorkuta development master plan, its significant part focuses on measures to improve the living environment, the Komi government continued. The plan is to renovate over 2027-2030 the Vorkuta airport, with investment of 7.7 billion rubles (95 million); to renovate and equip a number of municipal and social infrastructures: in healthcare - including the organization of two modular paramedic stations in the villages of Yeletsky and Sivaya Mask, in education, the city's cultural heritage, workout and sports facilities.

The region plans for 2026-2028 overhaul of the Usinsk water pipeline. This is the only waterway in Vorkuta that supplies water from the Usa River to the city, towns and coal mines. Under an agreement with the regional government, the local budget provides a subsidy of 945.4 million rubles ($11.6 million). The Vorkuta city administration has announced a competition to determine the contractor.

Communal infrastructures

Vorkuta's long-term development plan also includes works to build a waste sorting complex with a landfill for municipal solid waste, as well as to eliminate and revegetate the existing landfill.

"According to the federal government, the approved long-term plan allows the region to use financing instruments like writing off the region's debt on budget loans, as well as treasury infrastructure loans," the Komi governor's administration said.

The Russian government has approved for the Komi Region a treasury infrastructure loan of 1.5 billion rubles ($19 million) to 2030 to finance three projects of Vorkuta's long-term development plan. The first is the construction of a waste sorting complex with a landfill for municipal solid waste in the village of Severny near Vorkuta. The complex to be built in 2026-2030 is estimated at 1.201 billion rubles ($15 million). The second is a major overhaul of the ring road that connects Vorkuta with villages and all coal mining facilities - 137.5 million rubles ($1.7 million) for the highway's 9 km in 2028.

The third project is to renovate the Miners' Palace of Culture, a cultural heritage site, a landmark building for Vorkuta. The renovation, estimated at 153 million rubles ($1.9 million), is planned for 2028-2029.

"The Komi Region's government pays special attention to development of the Arctic territories, including Vorkuta as a backbone settlement in the Arctic. Vorkuta's master plan includes an extensive city improvement program - Central Square, Prosveshcheniya Square, the Timansky Ravine, including the construction of a new pedestrian bridge, as well as the reconstruction of a pedestrian bridge over the Vorkuta River, and other projects," the government said.

Vorkuta is a polar city where 66,900 people live. About 6,000 residents are employed in coal mining and in auxiliary industries of the Vorkutaugol city-forming company, which has been part of the Aeon Corporation's Russian Energy Company since December, 2021.

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