“SAMRUK-ENERGY” JSC | Integrated ANNUAL REPORT

COAL PRODUCTION

“Bogatyr Komir” LLP

(Forum Muider B.V. – 100 %)

“Bogatyr Komir” LLP is one of the largest companies in the world engaged in extraction of coal by opencast mining method. The company accounts for 59 percent of all coal mined in the Ekibastuz coal basin and about 39.5 percent of the total coal production in the RK.

“Bogatyrk Komir” LLP approved coal reserves amount to circa 2.9 bln. tons. Coal reserves at “Bogatyr Komir” LLP were approved up to minus 200 m horizon (depth from the surface is 400 m). With the current capacity of the enterprise coal reserves will be enough for no less than 70 years of operations.

“Bogatyr” coal mine, commissioned in 1970, exploits coal reserves in the fields (sections) 5, 6, 9, 10. The depth of the coalmine reached 280,m from the surface (mark: the horizon is minus 80m according to the Baltic measurement system).

“Severnyi” coalmine commissioned in 1954, coal is mined in the fields (sections) 1, 2, 3, 4. The depth of the mine reached 230 m from the surface (mark: the horizon is minus 30 m according to Baltic measurement system from Baltic sea level).

The main industrial layers of Ekibastuz field are layers 1, 2, 3, 4 with an average thickness of 160 m and a depth of up to 670 m. The total coal reserves of the field are more than 9 bln. tons.

The сompany supplies coal to generating facilities of “Samruk-Energy” JSC group of companies and third parties located both in Kazakhstan and in the Russian Federation.

Coal of “Bogatyr Komir” LLP has a number of advantageous consumer properties that exclude slagging of boilers when it is fired and freezing in railway cars in the winter. Coal is intended for pulverized combustion at thermal power plants, as well as for household needs.

“Bogatyr Komir” LLP extracts KSN grade (coking caking slightly metamorphosed) coal with an average calorific value of ~ 4.000 kcal / kg, ash content ~ 43 %. moisture ~ 5 %.

At the same time, the сompany by making commitments, allocates funds required for the implementation of the environmental protection program, the amount of funds allocated for the implementation of environmental protection actions amounted to 2.808–2.852 bln. tenge during 2017–2018, which is 2.3 times higher than the planned financing. At year-end 2018, more than 30 mln. tons of emissions to the environment were reduced.

Main expenditures of 2.6 bln. tenge resulted from placement of overburden in the internal disposal areas of “Severny” and “Bogatyr” open-pit mines, with the aim of goaf stowing. This allowed the company to reduce the placement of overburden on external waste dumps by 30 million tons.

An important action aimed at maintaining the quality of the environment and the state of the work site was the implementation of dust suppression actitivities at the excavation of coal in pit face, on the roads in sections, which are carried out with the use of mining water. Repair and maintenance of dust collectors of drilling machines made it possible to maintain the capture efficiency at design level – about 90 % of all drilling products extracted from the well. The cost of these activities amounted to about 89 mln. tenge. Owing to the work conducted in 2018, dust generation was reduced by 40 tons.

ENVIRONMENTAL INDICATORS

SOCIAL INDICATORS

Confirmed coal reserves of “Bogatyr” and “Severny” coal mines of “Bogatyr Komir” LLP

mln.tons

Seam

Confirmed reserves

Total for “Bogatyr Komir” LLP

1

397.9

2

630.8

3

1,401.7

4

484.6

Total:

2,915.0

Seam

Confirmed reserves

Of “Severny” mine (sections 1, 2, 3, 4)

1

199.8

2

298.1

3

662.2

4

205.9

Total:

1,366.0

Seam

Confirmed reserves

Incl. of “Bogatyr” mine (sections 5, 6, 9, 10)

1

198.1

2

332.8

3

739.4

4

278.7

Total:

1,549.0

As in previous years continuous monitoring of redox processes at disposal areas was conducted, strict observance of technological schemes of dumping, sealing of excavator dumps and roofs of dumps by inert rock within terms not exceeding the incubation period of the emergence of a new redox process of coal-bearing rocks, enabled to reduce the intensity of the process/development and reduce the volume of work on the area planning with a bulldozer and compacting using a vibrating roller.

With the help of a network of observation wells, the quality of groundwater was under the constant control in order to research the impact of external rock dumps of near-by territory on it.

Moreover the company continuously monitored the quality of its products – coal and crushed rock – for compliance with regulatory requirements, including the specific activity of natural radionuclides and the class of radioactive hazard.

This year, “Bogatyr Komir” LLP has continued supporting the green economy as regards the energy conservation and waste reuse, their reduction by supplying it to third-party organizations and enterprises engaged in their processing, detoxification, recycling, safe disposal and beneficial use. Contracts with the owners of landfills were concluded in order to dispose  production and consumption waste.

“Bogatyr Komir” LLP plans are connected with major projects of Kazakhstani power sector, such as reconstruction and commissioning of new power facilities of “Ekibastuz SDPP-1” LLP, “Ekibastuz SDPP-2 Plant” JSC, “Karaganda CHP-3”, Nur-Sultan city’s energy system, as well as with building of Balkhash TPP and CHP in Taldykorgan city.

Financial performance

Indicator

Measurement unit

2016

2017

2018

Net income/loss

mln. tenge

11,191

21,960

28,334

EBITDA

mln. tenge

22,785

34,506

41,441

EBITDA Margin

%

36.4

43.3

45.5

Results of operating activities

Indicator

Measurement unit

2016

2017

2018

Coal production volume

mln. tons

35.1

40.4

44.9

The volume of coal sales in the RK

mln. tons

25.9

30.7

35.6

to own PP

mln. tons

11.5

15.6

18.1

third party PP

mln. tons

14.4

15.1

15.9

Coal export volume

mln. tons

9.2

10.2

9.6

More information available on the website: www.bogatyr.kz