OREANDA-NEWS. July 15, 2010. OAO Raspadskaya informs about the measures on elimination of the consequences of the accident at Raspadskaya mine and implementation of the decisions of the government meeting on 24 June 2010. Currently Raspadskaya is taking operational measures to increase production volumes at other Company’s enterprises to compensate volumes which were temporarily lost as a result of the accident at Raspadskaya mine.

At ZAO “Koksavaya” mine which was acquired in April 2010 there has been commenced production and raw coal sales of grades K (KO) (hard-coking coal under international classification).

The Company developed a plan on the increase of production volumes at Raspadsky open-pit. Contracts for delivery of the excavator Bucyrus (Germany) with bucket capacity of 34 cubic meters, heavy dumper trucks BelAz (Republic of Belarus) with elevating capacity of 220 tonnes and drilling machines has been signed.

At the end of this week Raspadskaya is holding technical boards to discuss drafts of the adjusted mid-term programmes of the Company’s mining enterprises including production upside, investments, decrease of costs (that are not connected with the works on elimination of the consequences of the accident at Raspadskaya mine and increase of production volumes) and control of cost of production.

The Company has already prepared a part of technical and project documentation for Raspadskaya mine. Till the end of this week these documents will be submitted for the government examination.

On 20-22 July 2010, Raspadskaya will carry out an expert board with participation of international experts invited by the Kemerovo Region Administration and the management of Raspadskaya to further develop the optimal plan on elimination of the consequences of the accident and reconstruction of Raspadskaya mine.

According to the developed plan on elimination of the consequences of the accident and reconstruction of Raspadskaya mine total amount of costs on commencement of production at the mine will preliminary amount to RUB 8.6 bn. This amount will be allocated for social transfers, project works, fire extinguishing, pumping out water, reconstruction of mine workings, degassing and ventilation systems, as well as for purchase and repairs of mining equipment and preparation of coal faces.

According to the minutes of the meeting with the Prime Minister of the Russian Federation Vladimir Putin on 24 June 2010 there are held discussions on allocating funds from the Federal budget to finance the construction of the external electric networks of Mezhdurechensk and the Company’s enterprises.