R&R AUDIT AND CPR FOR ALL SUEK COAL MINES, OPEN PITS AND WASHING PLANTS
SRK UK has for many years undertaken Coal Resource and Reserve audits on behalf of SUEK in the Russian Federation. SRK has mobilised global teams of experienced international coal specialists for site visits to SUEK’s 40 open pits, underground mines, and washing plants. SUEK is an integrated coal, heat, and power company and a world top-5 supplier to the international coal market, producing more than 100 Mtpa, with its headquarters in Moscow and operations located across Siberia and the Far East of Russia. Underground operations, mostly in the Kuzbass Coal Basin, and many of the open pits, supply hard coal for both internal and export markets. Large brown coal operations, mostly located in the Krasnoyarsk Region, supply nearby power plants.
Following a desk review of data and an initial visit to the client’s headquarters in Moscow, SRK mobilised five teams of coal experts from amongst its permanent staff and close associates to undertake site visits. Underground mines, open pits, washing plants and surface infrastructure in the Kemerovo, Khakassia, Primorsky and Khabarovsk, Krasnoyarsk, and Buryatia and Zabaikalye regions were visited by teams comprising a mining engineer, geologist, environmental specialist and a processing engineer. Some specialists were fluent in Russian and English languages, whilst other English speakers were accompanied by experienced technical translators. Historical records, Life of Mine plans (LoMP), future expenditure and R&R declarations to the Russian state were examined and discussed with SUEK specialists. This was followed by extensive discussions in Moscow by a small SRK team to clarify and confirm issues regarding the LoMP and SRK’s proposed declaration of Coal Resources and Reserves culminating in the preparation of English and Russian language versions of a CPR.
SRK’s mining economist examined the Technical Economic Models provided by SUEK, confirming and amending as necessary with inputs from other team members and SUEK’s financial and strategic development team in Moscow, to fulfil the requirements of a Reserves viability test. In addition to the current production units, a number of proposed new licences and extensions to existing sites were examined and discussed. The audit required SRK’s team to have a good working knowledge of the relevant Russian legislation, and the current reporting and State approval systems.
In addition, SRK audited SUEK’s closure costing procedures and estimation. An SRK Russian environmental specialist liaised with and assisted SUEK’s team in the preparation of closure cost estimates for all assets, based on the proposed LoMP and historical costs, which included recently closed pits and mines.
SRK is confident that its recommendations will bring added value to SUEK and help maintain its reputation as an energy company striving to work to best industry practice at a difficult time for the coal industry.
