ELGA-- FEATURE ARTICLE – OCTOBER 2020

摘要

Elga has the potential to be one of the largest hard coking coal mines in Russia, with over 2.2Bt of reserves and a nameplate capacity of 28Mtpa ROM. As production continues to ramp up in 2018 to ~5.3Mtpa ROM, Elga is anticipated to be cash margin positive for the year and remain economically viable going forward. The geology at the operation is favourable with a strip ratio of around 2:1, very low compared to competing metallurgical coal-exporting regions such as Australia and Canada. Mechel is targeting to ramp up Elga to nameplate capacity over the next ten years, with economies of scale expected to keep onsite costs low. Freight expenses, however, account for the majority of Elga's FOB costs, as the mine is located around 2,500km from east coast ports. With increasing coking coal output and its acceptance on the international market, Elga has been increasing profitability since 2016. The expansion is facing the challenge as320km railroad built by Mechel can only carry 5-6Mtpa of coal.