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Celsius announces infrastructure options for coal transport

World Coal,

The Kyrgyz Republic government recently announced that Chinese funding of US$ 400 million is available for the construction of the first phases of a new road transport route between the capital Bishkek and Jalal-Abad near Osh. The road will ultimately form part of a larger link between the Kyrgyz Republic, China, Kazakhstan and Russia.

The road passes through Kazarman, which was Celsius’ operational base for the company’s exploration season in 2012, and will allow easier access to Celsius’ Kokkia and Kargasha deposits in the Uzgen Basin coking coal project.

This new road will provide transport alternatives for Celsius as it looks to develop its coal business in Central Asia and China. Company chairman, Alexander Molyneux, commented: “The new road infrastructure will open up new markets for us by creating a much shorter and more efficient transport corridor to Bishkek in the north, as well as additional options for transporting coal into the south of the Kyrgyz Republic and into Uzbekistan. In addition, coal once on this new road is able to link to other existing roads that provide transport options for export via road to Xinjiang Province in China."

The link road will complement the Trans-Asia railway which is also planned to pass within 10 km of Celsius' Uzgen Basin project, and will connect to China at the Torugart border crossing.

The timing of this significant infrastructure spend fits well with Celsius’ coal development and production plans, as the Uzgen Basin coking coal project is expected to commence production in 2015.

Adapted from press release by Katie Woodward

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