According to a Russian media report, Russian coking coal producer Elgaugol plans to finish constructing a 530-kilometer rail line to connect the Elga coking coal mine directly to the Elga port. The planned port is on the Sea of Okhtosk, which gives access to the Pacific Ocean. Company information states that the site will have a through capacity of 30-50 million metric tons.
he Elga coal deposit is located in the southeastern part of the Sakha Republic and is one of the largest untapped coal deposits in the world. The Elga coal complex includes a coal mine, a washing plant, and infrastructure for transporting the coal. Under the current setup, coal from the mine travels along a 360-kilometer rail branch that connects with Russian Railway’s (RZhD) Baikal-Amur Mainline at Ulak. Cargoes then travel at least 1,000 kilometers south to ports in eastern Russia for export.
Elga Port Impact on Global Trade
Information on Elgaugol’s website also indicated that the Elga open-pit coal mine has up to 2.2 billion metric tonnes of JORC-compliant resources. It also achieved annual production of 45 million metric tonnes in 2023. The site likewise noted that steelmakers in the APAC region are the primary end users of Elgaugol’s coal.
Russian metals and mining company Mechel developed the coal mine and built the original rail connection of this century, with production starting in 2012. However, the group sold it to Moscow-headquartered A-Property conglomerate in 2020 in an effort to restructure its debts. Mechel was also losing money on the rail link and wanted RZhD to take control of it in 2016, though reports now indicate that the railroad was reluctant to do so.
Author: Christopher Rivituso
