Projects financed by the EDB
Financing the purchase and production of dump trucks
EDB helps to expand mutual trade between Russia and Belarus
In December 2009, EDB and the Siberian Coal Energy Company (SUEK) signed a loan agreement related to the company’s project to re-equip its coal mines in Siberia. In accordance with the agreement, EDB opened a US $48.9 million credit facility for SUEK for five years.
The loan was used to replace obsolete BelAZ dump trucks (55-tonne, 12-tonne, and 130-tonne capacity trucks) with 30 new Belarusian vehicles, most having a 220-tonne capacity. They are used to take away the overburden of three coal mines in Kemerovo Region, the Republic of Khakassia and the Republic of Buryatia, whose commercial reserves of coal are around 280 million tonnes.
BelAZ is the world’s largest manufacturer of heavy-duty dump trucks and other heavy vehicles used in mining and construction. Its products include thirteen types of trucks with a capacity between 30 and 450 tonnes. The plant supplies its products to more than 70 countries and Russia accounts for about 50% of its sales.
SUEK is Russia’s largest and one of the world’s top ten coal producers. SUEK accounts for about 30% of the coal sold to domestic power stations in Russia and about 25% of the coal Russia exports to power stations elsewhere. It employs over 45,000 people and supplies coal to the power generation and utilities sectors in more than 60 administrative divisions of Russia.
New vehicles will improve operations at the mines and the efficiency of Russia’s largest coal producer and will allow coal extraction to be increased by approximately 3 million tonnes per year or, in monetary terms, more than RUB 1 billion per year.
The project had a significant effect on power and utilities companies in Siberia and Russia’s Far East. It also involved the placing of a large order with the Belarusian mechanical engineering sector and expanded mutual trade between Russia and Belarus.
EDB aims to contribute to the development of industrial cooperation between the countries, which has endured since Soviet times. In May 2015, it signed a US $75 million loan facility agreement with BelAZ. The funds will be used to purchase inventories, including raw materials, consumables, and components for the manufacture of trucks and other vehicles.
BelAZ’s top suppliers are Russian enterprises, accounting for more than 40% of its procurement spending.