Waste coal recovery
Coal mining and enrichment activities in the Donbas region over the last century created on-ground waste deposits – so called waste dumps and tailing ponds. Both these originated from the ineffectiveness of old technologies. Waste dumps and tailing ponds could become material source of additional coal, which could be extracted at a relatively low cost and generate stable cash flow for the Group. The company controls number of coal waste dumps and tailing ponds that are located in Luhansk and Donetsk regions.
The Group develops waste recovery business by constructing 4 reprocessing facilities in Eastern Ukraine with a total annual capacity of 3.6 mmt of feed.
First stage of the project will include waste dump reprocessing facility at Vahrushevo town with a total annual processing capacity of 0.9 mmt of feed. The project has a number of environmental and social benefits including: processing of waste material, reduced emissions of greenhouse gases, smaller stockpiles with associated visual landscaping improvements and social-economic benefits in terms of job creation and a local economic stimulus.
In 2011 the Group through its subsidiary PC Interdon LLC entered into a loan agreement with European Bank of Reconstruction and Development to partially finance the project development.