negotiates for role
in $2.1 bln coal project in Russia
SEOUL, South Korea (Reuters) — South Korea is looking to take part in a $2.1
billion project to develop coal mines in Russia, Seoul's energy ministry said
A mine in the south of the
Sakha is estimated to hold
2.13 billion tons of high-quality coal, and annual production of 30 million tons
should start by the end of 2009, the ministry said.
A consortium of South Korean
trading house LG International and state-run Korea Resources wants to
participate in the Elga coal project, said Vice Minister Lee Jae-hoon after
talks with Georgy Nikonov, foreign affairs minister of the republic of Sakha.
The two sides will hold
further talks next month. South Korean power generators are concerned about
delays in coal supplies from traditional suppliers such as Australia, China and Russia due to
high coal prices and strong domestic demand in these
Sakha holds 45 percent of all
Russia's coal reserves, the second
largest in the world.
LG International already
holds 35.2 percent in another coal development project in Russia.
South Korea imports 4.8
million tons of coal per year from Russia, worth about $2.9 billion last
Australia ships about 27 million tons
of coal per year to South
Korea, while Indonesia supplies 17 million