The head of Tuva explained the need for a coal export quota with the requirement of En + – RBK

Khovalyg: Tuva needs a quota for the export of coal to reduce prices on the domestic market

Tuva needed a coal export quota to reduce fuel prices within the region, the head of the republic Vladislav Khovalyg told RBC. Now the coal subsidiary of En + will be able to earn on supplies abroad, making discounts to the population

The allocation of a coal export quota for Tuva, which was agreed upon by President Vladimir Putin at the end of 2021, is part of an agreement with the Tuva Mining Company (owned by the En + group founded by Oleg Deripaska). The head of the republic Vladislav Khovalyg told RBC through a representative about this.

According to him, guarantees of exporting 0.4 million tons of coal per year by rail will allow the company to increase its net profit, and in return, it agreed to reduce the cost of coal for the population by 38%, to 2.2 thousand rubles. per ton.

Khovalyg said that back in April 2021, he complained to Putin about the “unaffordable” coal prices for the population. After that, officials began to look for a solution to the problem. In September, according to the decision of local authorities, the cost of raw materials on the domestic market was reduced. Then the government of Tuva started looking for a “mutually acceptable solution” for the En + structure. “We found such an option – the company agreed to a price cut on condition of an increase in the export of coal. The Russian government and the president himself have met us halfway, ”said the governor.

The Tuva Mining Company is mining coal by the open method at the Kaa-Khem coal mine, the largest in Tuva, and has a license to develop the Chadan coal deposit in the republic. The annual production volume is about 0.5 million tons. In 2020, the company’s revenue amounted to 1.344 billion rubles, net profit – 207.1 million rubles. (no data for 2021 yet). Last year, En + prepared a new development strategy for this asset, which involves the construction of mines in the license areas of the Kaa-Khem open-pit mine. The optimistic scenario of the project provides for the achievement of an annual coal production of 6.7 million tons, and the conservative one – 0.7 million tons. The total investment in the project is estimated at 52.8 billion rubles. The preliminary deadlines for the implementation of these plans are up to 2034.