News and events

13 July 2011

OJSC "Kuzbasskaya Toplivnaya Company” opened an innovation station of treatment facilities on the open-pit mine Cheremshansky

Treatment facilities were opened with the participation of the deputy governor of natural recourses and ecology Vladimir Kovalev and Igor Prokudin, CEO of OJSC "Kuzbasskaya Toplivnaya Company".

This opened facility doesn’t have an analogue nor in Russia neither abroad according to the complex of applied methods of treatment and the extraction ratio of soil ingredients.

The project and building of constructions were accomplished by CJSC "Scientific-productive firm "NORD".

The station was built for treatment of domestic and industrial-storm waste water of the Company and appears an exclusive station because of the set of treatment methods of industrial and domestic waste.

The construction was built for 6 months and "Kuzbasskaya Toplivnaya Company" spent almost 60 mln. RUR for these purposes.

The uniqueness of the station is that 9 methods were chosen for treatment of waste water, not 4-5 methods, which are normally used in standard treatment facilities.

Exactly the set of all the possible treatment methods allows to achieve the quality of the water identical to drinking one.

"One of the important tasks of our Company is excluding the possibility of nature damage in the production process. We are ready to invest into this good action, and within the nearest years we plan to build the newest innovation treatment facilities in our open-pit mines. Assets for these purposes were planned in the investment program of the Company till 2015"– said Igor Prokudin, CEO of KTK.

For more information please contact:

OJSC "Kuzbasskaya Toplivnaya Company" Kemerovo
Elena Sarycheva
Head of public affars department
+7 384 236 47 62

For investor enquiries please contact:
OJSC "Kuzbasskaya Toplivnaya Company" Moscow
Anton Rumyantsev
Investor relatinons manager
+7 495 787 68 05

Notes to editors:

Company Overview

OJSC Kuzbasskaya Toplivnaya Company ("KTK” or the “Company") is one of the fastest-growing thermal coal producers in Russia. In terms of 2010 production volume, it was ranked 7th among the largest thermal coal producers in the country. In the ten years since its establishment, the Company has commissioned and launched three open-pit mines and an enrichment plant, achieving annual production volume of 6.8 million tonnes of coal in 2010. The Company expects to continue to grow its production volume, in particular, following the launch of the Cheremshansky mine in 2008 and ongoing investments into its high performance modern mining technology, aimed at achieving the aggregate structural capacity1 of existing mines of 11 million tonnes of coal per year.

The Company’s JORC coal resources totalled 402 million tonnes of ROM coal as of January 1, 2011 and proven and probable reserves amounted to 185 million tonnes of ROM coal, recoverable during the period of 2011-2030. 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 minimising overhead costs and expenses.

In 2010, the Company’s total coal sales amounted to 8.5 million tonnes of coal, of which 6.4 million tonnes were produced by the Company and 2.1 million tonnes were retailed after purchasing from other coal producers. The Company maintains a diversified sales structure balanced between export and domestic sales with approximately 56% of the coal sold to domestic consumers and approximately 44% exported, primarily to Poland, South Korea and China, in 2010.

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 01 January 2011, the Company’s distribution network included 65 owned and operated points of sale and delivered 3.3 million tonnes of coal in 2010, positioning KTK as one of the principal suppliers of coal to retail customers in Western Siberia.

FY 2009 Financial Highlights

  • Revenue increased by 25% to RUR 10,658 mln (2008: RUR 8,557 mln)
  • EBITDA2 – RUR 2,177 mln (2008: RUR 2,172 mln)
  • EBITDA margin – 20% (2008: 25%)
  • Net income – RUR 663 mln (2008: RUR 1,102 mln)
  • Net income margin – 6% (2008: 13%)


1 The maximum production capacity that the Company believes could be achieved (taking into account projected stoppages for planned repair and maintenance) in an annual period if the Company were able to process all the coal that could be mined using the Company’s existing mine facilities after acquisition of certain mining equipment and construction of three processing/enrichment facilities in accordance with its current capital expenditure program.

2 EBITDA for each period is defined as results from operating activities, adjusted for amortisation 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.