KRU Overseas to increase share of metallurgical coal supplies to global markets


KRU Overseas intends to increase the share of metallurgical coal supplies, owing to the sustainable development of its parent company – the coal producer Kuzbassrazrezugol, which plans to construct new high-performance, environmentally friendly full-cycle washing plants in Kuzbass (Kemerovo Region) as part of the global ESG agenda. This will allow Kuzbassrazrezugol to halve ash content of the material, while increasing supplies of PCI concentrate and semi-soft coal to steel mill and will also enable KRU Overseas to ensure greater eco-friendliness of coal it sells as well as the compliance with strict environmental requirements.

In 2022, Kuzbassrazrezugol will start the construction of two advanced high-tech washing plants Taldinskaya-Energeticheskaya and Kedrovskaya, which are scheduled to reach the design capacity of 6 million tonnes and 3 million tonnes respectively from the beginning of 2025. Currently Kuzbassrazrezugol operates 6 coal washing plants, 10 coal preparation facilities with steeply inclined separators and more than 20 screening and crushing facilities. To improve the quality of its coal, KRU refines the material through washing, screening and crushing.

As an exclusive trader in the global coal market under the brand of Kuzbassrazrezugol, KRU Overseas is proud to share the plans of the parent company to start designing the washing plant at Cheksinsky site as well as preparatory works at the open-pit mine of the coal deposit in 2022. The launch of Cheksinsky deposit will broaden KRU Overseas product range by including premium coking coal and anthracite.

This year, Kuzbassrazrezugol obtained a license to develop this metallurgical coal field with estimated reserves of 528.3 million tonnes of semi-soft coal, 144.5 million tonnes of HV coking coal, 52.4 million tonnes of MV coking coal, 329.4 million tonnes of LV PCI and 278.25 million tonnes of anthracite. The development of Cheksinsky will enable the company to increase its production by 25%, extracting 15 million tonnes of high-quality coking coal and anthracite per year, which demonstrates intentions to boost the share of premium metallurgical material in its total output. Kuzbassrazrezugol’s total investments in 2022 will exceed 45 billion RUR. The company is reaching a fundamentally new level of production quality, environmental protection and occupational safety.

The increase in the share of high-quality premium metallurgical coal supplies at the expense of the decreasing percentage of thermal coal production reflects the general global trend towards a reduction in demand for low CV, high-ash thermal coal and a gradual transition to green energy sources. As part of the long-term strategy, KRU Overseas ramps up deliveries to Asia-Pacific markets by redistributing shipments from the European sales outlets. The main transshipment port is the largest specialized coal terminal in Russia, JSC Vostochny Port, with a handling capacity of 50 million tonnes per year.

KRU Overseas is one of the largest global traders of high-quality coal with sales volume of more than 45 million tonnes per year, as well as the world leader in supplying PCI to international markets.

Kuzbassrazrezugol is the largest producer of high-quality hard coal in Kuzbass. The company incorporates 11 open pit mines and 1 underground mine. The annual coal production is 45-50 million tonnes.