Funding spat threatens Russion coalfield devt

摘要

Elegesk, a massive coking coal deposit in Russia's Tuva republic, looked as though it had cleared a last major hurdle before development earlier this month. This followed a decision by the new Russian Federal Investment Fund to pay for 70 percent of the 500km Kyzyl-Kuragino railway, to link the deposit to the main Russian railway system. The 30 percent balance of the 74.6 billion Pupees (2.8 billion dollars) rail link would be picked up by the Yenisey Industrial Company (controlled by Mezhprombank), which holds the licence to develop the deposit. However, this plan now looks in jeopardy with the investment fund getting into a spat with the rail authority RZhD over who invests what. Yenisey is promising 12mt a year of coal production, which will make the railway financially viable. However, the fund has now decided to increase the length of the railway by 25kms "to enhance the social effect of the project."