UK Kuzbassrazrezugol OAO is a Kemerovo, Russia-based coal company. The company extracts, processes, and distributes coal domestically and internationally. Kuzbassrazrezugol's products are used primarily in the energy sector and metallurgical industry. The company is majority-owned by Iskander Makhmudov and Andrei Bokarev. Combined, the two men own 75% of the company. Iskander Makhmudov is an Uzbek businessman based in Russia who has been referred to as "one of Russia’s most prominent involved industrialists" who has contributed more than $1 billion to social, civic and philanthropic causes since 2001.
In the summer of 2013, the company paid for the children of employees to attend a summer recreation camp. Over 270 children attended the program, and the company invested over $24 million into it. According to Metal Mining Wire, the program is "aimed at providing recreational opportunities for the families of deceased employees and single parents."
Financial performance
As of December 12, 2012, the company’s market cap is $3.3 billion. According to Bloomberg Businessweek: "Year over year, Kuzbassrazrezugol Open Joint - Stock Coal Company has been able to grow revenues from 50.8B to 60.9B. Most impressively, the company has been able to reduce the percentage of sales devoted to selling, general and administrative costs from 19.92% to 16.78%. This was a driver that led to a bottom line growth from 7.4B to 8.2B."
Kuzbassrazrezugol will invest 20 billion rubles in construction of new processing and enrichment facilities between 2011 and 2015. The company is well-positioned in the market. Benefits include:
Additionally, the equity report writes, "All the branches will easily operate their pits during next 35 years owing to significant coal resources.” Kuzbassrazrezugol is working on a $300–500 million project to build a new coal export port named Lavna in the Kolskiy bay of the Barents Sea, to be capable of shipping 18 million tons of coal per year. This was a joint project with Siberian Business Union until the latter withdrew in 2013.
Recent news
The port in the Krasnodar Krai is set to be operational by 2018 with expected cost of $7 billion, where Kuzbassrazrezugol is mentioned among potential investors in the project.
In June 2013, BelAZ delivered 23 rock haulers to the Kuzbassrazrezugol, including 10 with the carrying capacity of 130 tonnes and 13 vehicles with the carrying capacity of 220 tonnes. Before the end of this year, BelAZ will ship six more rock haulers, including one with 220-tonne capacity.
In May 2013, Kuzbassrazrezugol's Chief of the Electromachanical Department Igor Kirillov attenred on IZ-KARTEX's 5th Technological Conference named "Development perspectives of mining equipment of IZ-KARTEX".
On May 28, 2013 VTB Bank has signed a $95.6 million loan with Kuzbassrazrezugol.
