Bogatyr Coal LLP: Results and Plans
31.03.2017
Ekibastuz, March 31, 2017 - In the coal mining company Bogatyr Coal LLP the series of reporting meetings of the partnership management with the labor collectives of the structural subdivisions of the enterprise took place.
In the course of the reporting meetings General Director of the company Serik Raipov pinpointed the attention upon the most important moments of the activity of the enterprise. At the same time for the full and objective understanding of the current state of affairs General Director took the results of the financial and economic activity of Bogatyr Coal LLP for 2015 as a starting point.
- In 2015 the company shipped 33 million 923 thousand tons of coal to its customers having mined 34 million 500 thousand tons. The size of the proceeds made about 55 billion tenge, – Serik Raipov said. - At the same time the enterprise attracted additional financial means from second-tier banks to replenish its circulating funds. 41 million dollars total were spent by Bogatyr Coal LLP to pay bank interests only. All that together deteriorated the financial condition of the company. Recognizing the complexity of the situation of the enterprise the first thing we did beginning from 2016 was we developed a set of cost reduction measures. One of the measures taken and being taken remains to get rid of our dependence on banks. One should say this policy has already started giving its positive results. For example, if in 2015 the company attracted 33,4 billion tenge then in 2016 - 17 billion tenge only. We reduced the debt of the enterprise to the banks significantly. If as of January 1, 2016 the company's debt to the banks made 14,6 billion tenge then as of January 1, 2017 it was reduced down to 9,7 billion tenge. Our main purpose is to make the enterprise healthy, galvanize life into it. One should note in 2016 the company paid penalties in the volume of 3,5 billion tenge for the period from 2009 through to 2015, moreover no funds had been envisaged for these purposes in the business-plan. 1,9 billion tenge of them were allocated for payment of penalties to JSC National Company KTZh for the use of rail cars and 2,1 billion tenge for payment of the fine by the results of the tax review for the period from 2009 through to 2012. In addition to it, the main payment made 1,1 billion tenge, penalty – 0,5 billion tenge and the reserve for a penalty - 0,5 billion tenge. By my instruction to avoid additional penalties for the period of 2013-2015 the recalculation of tax liabilities was made, as a result of which the amount of corrections made about 1,6 billion tenge. All the obligations undertaken by the administration and shareholders to the labor collective of the company are being fulfilled.
Directly regarding the results of the company's activity in 2016 Serik Raipov said:
- We saw what difficult conditions we had to work in last year but nevertheless we managed to mine and ship 35 million tons of coal with the plan for 32 million 500 thousand tons. I think the result has been achieved thanks to the contribution of most of you. At the same time one should take into account we did not manage to ship 2 million 400 thousand tons more because of some interruptions in the feed of rail cars, which had been taking place since September of last year.
As Serik Raipov explained the company managed to achieve the over-fulfillment of the planned parameters thanks to the active negotiations with potential coal customers. So, among the main buyers of Bogatyr coal in Pavlodar Region there is JSC Pavlodarenergo with the guaranteed volume of coal consumption on the level of 2,5 million tons per year. Speaking about the production parameters of the past year Serik Raipov spoke about the plans for 2017.
Having the forecast on the level of 33 million 900 thousand tons the company management managed to conclude contracts for coal delivery in the volume of 40 million tons of coal. The efficiency of the negotiations conducted was demonstrated by General Director by the example of Refta power plant, with which Bogatyr Coal LLP had concluded the contract for coal delivery with a guaranteed volume of 9 million tons, and taking into account a 10%-option the total volume of deliveries should approach 9 million 900 thousand tons. At the same time the works are carried out with the customers on forming a balanced schedule of coal shipments for the current year.
Then the head of the coal mining enterprise spoke about the measures on cost reduction being implemented in the company and also on investments in operations and social sphere. During the reporting meetings the company management reminded on the tasks determined by President in his regular Address to the people of Kazakhstan called The Third Modernization of Kazakhstan: Global Competitiveness. The company management underlines that basing on this policy document perspective plans of the coal production development are being formed. The employees of Bogatyr Coal LLP are confident the growing demand in electric power generated by Ekibastuz power plants ## 1 and 2 and other power plants will provide the sustainable market demand for Bogatyr coal.
For information
Bogatyr Coal LLP is a joint enterprise on opencast coal mining belonging to JSC Samruk-Energo of Kazakhstani Fund of the National Welfare called Samruk-Kazyna and the Russian United Company RUSAL. 60% of the whole coal mined in Ekibastuz coal basin and 40% of the total volume of coal production in the Republic of Kazakhstan fall on the share of Bogatyr Coal LLP. Bogatyr Coal LLP is one of the world largest enterprises on opencast coal mining; its balance reserves are 2,75 billion tons. The production capacity of the enterprise is 42 million tons of coal per year, including 32 million tons on Bogatyr coal mine and 10 million tons of Severny coal mine.
Press-Service of Bogatyr Coal LLP.
Contact telephone numbers: +7 (7187) 223657, 223757.
