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SUEK proceeded to railway supplies of coal to China

Friday, August 31st, 2007

OJSC SUEK proceeded to railway supplies of coal to China. The trial lot at the amount of 1 thousand tones of coal of the internal quality was shipped from the Tugnuiski section on the 25th of July for China Datang Corporation.

Export supplies of coal from Russia to China by railway through the transit passage Zabaikalsk-Manchzhuria have not been effected for more than 100 years since the moment of construction of the Far-East Railway.

“Till present we exported coal through the Vostochny Port the distance to which from the Tugnuiski section is considerably larger than the distant to Chinese ports Dalian or Уingkou. And from these ports the distance to southern ports of China, in their turn, is less than that from the Vostochny one. Thus we significantly cut costs associated with railway transportations and freight. Implementation of this project opens for us the north-eastern market of China and also permits to strengthen positions in the south of the country. The Chinese party also obtains extra advantages on account of reduction of taxes on coal import”, the head of the Branch SUEK AG in Taipei Alexei Popov comments.

It is planned that within the next year SUEK will supply 0.5 million tons of coal by railway to China Datang Corporation, annual amount of shipment will be gradually increased.

China Datang Corporation is one of the largest Chinese energy companies. It was created on the basis of the former State Energy Corporation of China and is fully owned by the state.

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