Chinese consortium starts modernizing coal mining in Uzbekistan

Tashkent, Uzbekistan, Sept. 12 By Demir Azizov – Trend: A consortium of China Coal Technology & Engineering Group Corp. and China Railway Tunnel Group Co., Ltd. have started the main preparatory work within the project to modernize capacities of Uzbekistan’s Shargunkumir JSC, an official with the Uzbekcoal JSC told Trend. The project worth $94.5 million is expected to be implemented in the first quarter of 2020, according to the company official. The project will be financed through an $89.8-million loan of Export-Import Bank of China and own funds of the coal producer. It was previously reported that the investment project envisages modernization of coal production at Uzbekistan’s Baysun and Shargun coal fields, with an estimated capacity of 900,000 tons of coal per year. The Shargunkumir JSC, the main shareholders of which are Uzbekenergo JSC and Uzbekcoal JSC, owns a license for the development of the Baysun and Shargun coal fields with total proved reserves of 82.2 million tons of coal. China Coal Technology & Engineering Group Corp. won a tender to implement this project in 2013 but it was put off due to technical and financial problems. Later, the company attracted China Railway Tunnel Group Co., Ltd. as a contractor. In mid-2017, Uzbekcoal JSC and Shargunkumir JSC were transferred to Uzbekistan Railways JSC. The coal companies had previously been a part of Uzbekenergo JSC. Uzbekistan’s proved coal reserves amount to 1.9 billion tons. At present, Uzbekistan’s need for solid fuel is about four million tons per year. The main consumers of coal in the country are a number of enterprises of the Uzbekenergo JSC – more than 85 percent of total coal consumption in the country accounts for them. In 2016, 3.6 million tons of coal was produced in Uzbekistan.