Raspadskaya's big budget

SIBERIAN coal producer OAO Raspadskaya has budgeted $US976 million of capital expenditure over five years to produce 18.5 million tonnes of coking coal in 2015.
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Raspadskaya Mine's longwall mining equipment.

Blair Price

Since the two tragic explosions at the Raspadskaya longwall mine in May last year, the company has managed to ramp up production at its three other operations including the Raspadsky open pit.

Extraction of the first face at the Raspadskaya mine started in mid-December, while mining of another four faces is planned.

The next face is due to start in the June quarter, another is slated to start in the September quarter, while two more will be brought into operation in the December quarter.

Total coking coal production from the Raspadaskaya mine is anticipated to hit 2.5Mt for this calendar year.

But output is forecast to ramp up to 6Mt in 2012, 6.2Mt in 2013, 7Mt in 2014 and 9Mt in 2015.

The Raspadsky open pit is expected to hit 4Mt per annum by 2015, while the MUK-96 mine is aiming for 3Mtpa and the Raspadskaya-Koksovaya mine is targeting 2.5Mtpa.

The company has budgeted $54.8 million for maintenance and reconstruction costs over the 2011-15 calendar years, which will peak at $14.6 million this year.

Capex investment will peak at $252 million in 2012, followed by $227 million budgeted in 2013.

Out of the almost $1 billion slated for capital investments over the 2011-15 years, the company will direct most of it into purchasing new equipment and drift development.