TASHKENT (TCA) — Uzbekistan plans to increase coal production more than threefold in the next five years, the official Jahon information agency reported.
In 2017, the country plans to produce 3.9 million tons of coal. In 2019, the figure is projected to reach 4.78 million tons and as much as 11.67 million tons in 2021. Last year, 3.87 million tons of coal was extracted in the country.
It is planned to invest $690.5 million in the development and modernization of the coal industry in 2017-2021. Major sources of funding include the Fund for Reconstruction and Development of Uzbekistan with $68.7 million, soft loans of the Shanghai Cooperation Organization in the amount of $378.7 million, $155.6 million of loans from Uzbek commercial banks, and $87.5 million of own funds of enterprises.
The replacement of outdated equipment in the industry ranks among the largest projects, with preliminary cost estimated at $170.2 million.
It is also planned to renew the fleet of the railway engineering company Uzbekugol (Uzbek Coal) through $59.6 million. These funds will be spent for the purchase of locomotives, traction units, and dump cars.
In addition, Uzbekistan will invest over $165 million in the construction of the Angren mine. Experts are currently finalizing a feasibility study for the project. The mine will allow producing up to 4 million tons of coal annually. Uzbekugol has scheduled to come up with the general contractor for the project in the third or fourth quarter of the current year, and launch the project at the end of 2017.
Uzbekistan’s coal reserves are estimated at 5.7 billion tons, including 1.85 billion tons of lignite and 47 million tons of bituminous coal. Every year, Uzbekistan produces about 4 million tons of coal, 85% of which is consumed by the country’s coal-burning power plants.
