Belon Invests over 550 Million Rubles in Development of its Railways

In 2007, Belon Group will invest over 550 million rubles in development of its railways, which amounts to over 10% of the total planned investments. The company will allocate this money to construction of railway facilities of the Kostromovskaya mine and of the Listvyazhnaya coal preparation plant, as well as to renovation of the Inya railway station.

The key priority for the investment programme is the Kostromovskaya railway station, which will serve as the main coal-carrying point for the Kostromovskaya mine. In accordance with the enterprise development plan, this year’s investments in the railway facilities of the mine will reach nearly 400 million rubles, whereas in 2008 another sum of 172,486,000 rubles will be added. The Kostromovskaya railway station will be commissioned in late 2007. Its operating capacity is estimated at 2 million tons of coal per year. There will be a hangar for track machines and a coal handling terminal. The station will be adapted to electric power. In addition, the Company will build a block post at the Yegozovo station belonging to the Russian Railways and connecting the Kostromovskaya railway station with the Russian Railways network.

Belon Group is also completing construction of the Listvyazhnaya station designed for servicing the Listvyazhnaya coal preparation plant (CPP). In 2007, the planned investments into the railway facilities of the Listvyazhnaya CPP will amount to 106,809,000 rubles; in 2006 the volume of investments drawn down was 104,609,000 rubles. The station will operate as a part of the loading and warehousing complex, which will include a tunnel with a stock of coal, a coal re-handling facility, two belt galleries, an access road and a substation. As early as this August, together with the commissioning of the Listvyazhnaya coal preparation plant, the cleaned steam coal will start being offloaded at the new station. According to the Company’s plans, the station will allow for selling nearly 5 million tons of coal per year.
 
The Inya railway station is a key link in Belon’s local network of railway stations. It is connected with the Russian Railways network via the Meret station. The first stage of renovation of the Inya station was completed in December 2006: the station tracks were extended, their working capacity was increased. This year was a start of the second work stage, which includes electrification, laying of three new tracks, and construction of a new station building. In addition, all operations conducted jointly with the Railways will be computerized. This year, investments in the Inya station will amount to over 45 million rubles. After the works are completed, the operating capacity of the Inya station will double to amount to over 5 million tons of coal a year.