An agreement on economic and social cooperation between OJSC "Kuzbasskaya Toplivnaya Company" with the administration of the Kemerovo region in 2013 has been signed today.
The document has been signed by First Deputy Governor Valentine Mazikin and CEO OJSC "Kuzbasskaya Toplivnaya Company” Igor Prokudin.
Company plans to increase coal production this year up to 10.2 mln. tonnes (2012: 8.7 mln. tonnes).
In 2012 the company invested RUB 0,5 bln. in the development of production. The funds will be used to purchase mining-transportation equipment.
Company will allocate RUB 25 mln. to create safe work conditions. The parties agreed to keep the average salary at the level of 2012, which is RUB 41,100.
Tax payments to the consolidated budget of the region will be amounted RUB 563.2 mln., on social benefits for workers and retirees Company will allocate, as in 2012, RUB 45 mln.
OJSC "Kuzbasskaya Toplivnaya Company" will finance social programs in the amount of RUB 26.6 mln., including the "Miner's Day" – RUB 5.5 mln., funding of regional programs – RUB 10.6 mln., the financing of Christmas gifts for children-orphan in Kuzbass – RUB 1.0 mln., funding for social programs Belovo area – RUB 4.0 mln. for social programs Tashtagol – RUB 0.5 mln., for the provision of material assistance to the Kemerovo regional public fund "V. P. Romanov" RUB 0.5 mln.
In addition, in early 2013, was funded by the purchase of buses under the "Transport program Kuzbass" in amount of RUB 4.8 mln.
In 2013 OJSC "Kuzbasskaya Toplivnaya Company" will ensure the delivery of charity sorted coal of 3.5 th. tonnes for the poor of the Kemerovo region.
"In 2012, OJSC "Kuzbasskaya Toplivnaya Company" invested RUB 4.67 bln. in the development of production. It's the maximum amount of investment in the history of the Company. Most funds were used to complete the construction of second washing plant "Kaskad-2." In addition, all applications held commitments were met in full, in spite of the difficult market conditions during the year", - said CEO of OJSC "Kuzbasskaya Toplivnaya Company" Igor Prokudin.
Contacts for press:
OJSC "Kuzbasskaya Toplivnaya Company" (Kemerovo)
Elena Sarycheva
Head of public affairs department
Tel.: +7 (3842) 36-47-62
E-mail: es@oaoktk.ru
Contacts for analysts and investors:
OJSC "Kuzbasskaya Toplivnaya Company" (Moscow)
Vasily Rumyantsev
Head of Moscow office, IRO
Tel.: +7 (495) 787-68-05
E-mail: vkr@oaoktk.ru
Notes to editors:
Additional information about the Company and investor calendar: www.oaoktk.ru/en/investors
Company Overview
OJSC “Kuzbasskaya toplivnaya company” (“KTK”) is one of the fastest-growing thermal coal producers in Russia. In terms of 2012 production volume1, it was ranked 6th among the largest thermal coal producers in the country. In the thirteen years since its establishment, the Company has commissioned and launched three open-pit mines and a two washing plants, achieving annual production volume of 8.71 mln. tonnes of coal in 2012.
The Company’s JORC coal resources totaled 391 mln. tonnes of raw thermal coal as of January 1, 2013 and proven and probable reserves amounted to 174 mln. tonnes, recoverable during the period of 2013-2030. In December 2011 the Company won an auction for the right to use subsurface of “Bryansky” coal deposit with reserves of 250 mln. tonnes of coal in the C2 category. The surface mine is located in close proximity to existing infrastructure and production assets.
The Company produces exclusively thermal coal, classified as grade “D” under the Russian classification system, with a naturally low sulphur and phosphorus content, as well as a relatively high calorific value.
The Company conducts mining operations at three open-pit mines, located in the Kuzbass area, Russia’s largest coal producing region. The Company’s mining operations are supported by an extensive production and logistics infrastructure, including its own railway network and facilities, which enable the Company to transport 100% of produced coal from the open-pit mines to the main railway hub at the long-distance railway network, operated by the Russian Railways. Furthermore, as the Company’s mines are compactly located within 5 km from each other, a number of operations are conducted centrally, thereby minimizing overhead costs and expenses.
In 2012, the Company’s total coal sales amounted to 10.20 mln. tonnes of coal, of which 8.51 mln. tonnes were produced by the Company and 1.70 mln. tonnes were resold after purchasing from other coal producers. The Company maintains a diversified sales structure balanced between export and domestic sales: in 2012 about 42% of coal was sold to domestic consumers and approximately 58% exported, primarily to Eastern Europe and the Asia-Pacific region.
The Company’s strong regional presence is supported by an extensive retail distribution network, located throughout the Kemerovo, Novosibirsk, Omsk and Altay regions of Western Siberia. As of January 1, 2012, the Company’s distribution network included 70 owned and operated points of sales and delivered 3.45 mln. tonnes of coal in 2011, positioning KTK as one of the principal suppliers of coal to retail customers in Western Siberia.
65.61% of share capital is owned by the management (I. Prokudin – 50.001%, V. Danilov – 15.61%), free-float – 34.39% is distributed between 25 investment funds and individuals (about 0.31%).
FY 2011 Financial Highlights
1 Metal Expert, January 2013
2EBITDA for each period is defined as results from operating activities, adjusted for amortization and depreciation, impairment loss and loss on disposal of property, plant and equipment. EBITDA is not a measurement of the Company’s operating performance under IFRS and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with IFRS or as an alternative to cash flow from operating activities or as a measure of the Company’s liquidity.
