News and events

24 June 2011

OJSC «Kuzbasskaya Toplivnaya Company» held the annual General meeting of shareholders

On June 23, 2011 the annual General meeting of shareholders took place, where the annual report and the annual financial statements of the Company for 2010 were approved.

By the decision of the shareholders according to the results of 2010, 297 775 065 RUR will be forwarded for dividend payment.

According to the results of the Company’s performance in 2010 dividends must be distributed at the rate of 3 RUR for 1 common share of nominal value of RUR 0.2 each.

Dividends distribution must be performed in accordance with the list of persons, authorized to receive dividends within 60 days from the date of making a decision of their payment.

Following the results of shareholders’ vote, the Board of Directors of OJSC "Kuzbasskaya Toplivnaya Company" will include the following candidates form the list, approve earlier by the Board of Directors:

  • Igor Prokudin – the General Director OJSC "Kuzbasskaya Toplivnaya Company";
  • Eduard Alexeenko - First Deputy General Director of OJSC "Kuzbasskaya Toplivnaya Company";
  • Vadim Danilov – the Chairman of the Board of Directors of OJSC "Kuzbasskaya Toplivnaya Company";
  • Yuriy Fridman - Independent Director of OJSC "Kuzbasskaya Toplivnaya Company";
  • David Stewart - Independent Director of OJSC "Kuzbasskaya Toplivnaya Company".


СJSC "Consulting Group "Balance" was approved to be the Auditor of OJSC "Kuzbasskaya Toplivnaya Company".Members of the audit committee were elected and the following documents were approved:

  • Redrafted Regulations of OJSC "Kuzbasskaya Toplivnaya Company";
  • Redrafted Regulations on the procedure for preparing and holding the general meeting of shareholders;
  • Redrafted Regulations on the Board of Directors;
  • Redrafted Regulations on the General Director;
  • Regulations on the Audit Committee.


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 in 2000, 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 totaled 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 located within 5 km from each other, a number of operations are centralized, 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.

Consolidated IFRS 2010 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 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.