Korea Midland Power in Long-term Cooperation with Carbo One

The Korea Midland Power Corporation signed an MOU with Carbo One (CEO Alexey Danilov) in Russia for long-term bituminous coal purchases and preferential coal supplies.

According to the agreement, the corporation will be supplied with 280,000 tons of high grade coal on an annual average until March 2017, while the Russian company preferentially supplies its coal in the case of an emergency concerning the corporation’s bituminous coal procurement.

At present, the Korea Midland Power Corporation is running eight 500 MW thermal power generation units, while consuming 14 million tons of bituminous coal a year. The power generation capacity is scheduled to be increased by 3,000 MW in 2016 and later, and yearly coal consumption is estimated to reach 25 million tons.

In the meantime, Russia accounts for approximately 11 percent of the global total coal export volume and about 50 percent of its shipment heads for the Asia-Pacific region. For Korea, imports from Russia are highly advantageous in that a carrier can return to Korea in six days, while it takes 28 days for imports from Australia, Korea’s number one bituminous coal import source.

Carbo One is the second-largest mining company in Russia. It is currently producing 45 million tons of mineral resources in 11 mines located in Kemerovo, Siberia. It owns the Vostochny Port as well, the largest coal exporting port in the Far Eastern Region.