Kyrgyzstan and China launch a $430 million coal logistics project

One of the largest infrastructure projects in the field of coal logistics and export has been launched in Erkeshtam. The total investment will amount to $430 million.

A time capsule laying ceremony took place in the village of Nura in the Alai District of the Osh Region, attended by Deputy Minister of Energy Salavat Sadyrakunov.

The project is being implemented by Kyrgyzkömür OJSC and the Chinese company Xinjiang Dacheng Yuanlong Technology Co., Ltd.. It involves the construction of a logistics centre, two coal preparation plants on a 10-hectare site, and a conveyor system to transport coal from the Tekelik deposit via the Erkeshtam border crossing.

In the first phase, investors will invest $50 million. It is planned that the transport capacity will reach 10 million tonnes of coal per year. The length of the first section of the conveyor will be 7.7 km, and this will subsequently be extended to 157 km.

The project is expected to create over 100 permanent jobs. The Kyrgyz authorities expect the initiative to boost the country’s export potential, modernise logistics in the coal sector and strengthen economic cooperation with China.

To facilitate the project, the state is already providing support for the transport of machinery and equipment across the border under the ‘green corridor’ regime.