|China-Russia Partnership on Coal Mining Deals|
|by Tom McGregor||Thu, Sep 4, 2014, 08:52 PM|
BEIJING: President Barry Obama's so-called 'sector sanctions' on Moscow have just boosted Russia's coal mining industry.
According to Forbes, "China’s Shenhua Group, the country’s largest coal producer, inked a $10 billion contract with Russia’s Rostec to develop coal deposits in Siberia and the Far East of Russia, another sign that energy cooperation between the two countries are gathering momentum when Russia’s relations with U.S. and Europe sour over the Ukraine crisis."
China will upgrade Russia's coal mining and ports technology to boost coal exports from Russia.
As reported by Forbes, "Shenhua and Rostec will jointly explore the Ogodzhinsky coal mine’s estimated 1.6 billion metric tons of reserve in 2016. Production of the mine is likely to start in 2019, with an annual output of 30 million tons, . Sergey Chemezov, Rostec CEO, told China Daily that the profit margin could be about 20% by the time they start production."
Russia seeks to diversify its energy business in Asia.
To read the entire article from Forbes, link here:
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