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Projects financed by the EDB

Investment financing for Bogatyr Komyr

Over 40% of Eurasian Development Bank’s current investment in Kazakhstan is in the energy sector

The Bogatyr mine, with its design capacity of 50 million tonnes of coal a year, was built between 1965 and 1979. In 1985, it saw its highest ever annual output of 56.8 million tons. This was the first mine in the world to reach this level of output, winning Bogatyr a place in the Guinness Book of Records.

Around 80% of project equipment (costing approximately US $40 million) is supplied by Russian enterprises. Kazakhstan’s tax revenues from the project will total US $34 million over the lending period.

In 2009, Bogatyr, the largest mine in the Ekibastuz coal basin, as well as the Stepnoy and Severny mines were taken over by Bogatyr Komir, a joint venture by Kazakhstan’s Samruk-Energy and Russia’s RUSAL.

Today, Bogatyr Komir is Kazakhstan’s largest coal producer, accounting for approximately 70% and 45% of all coal produced in the Ekibastuz basin and Kazakhstan respectively. Moreover, the company has become on the world’s leaders in opencast mining.

Bogatyr Komir is running an overhauls programme to advance its coal production, shipping and transportation, improve coal properties (blending), and upgrade key process equipment. The total amount of investment needed for the programme is about US $500 million.Over 1 billion tonnes of coal have been extracted from the Ekibastuz basin to date. Bogatyr Komir’s total recoverable reserves approximate 3 billion tonnes of coal. At present, the Bogatyr and Severny mines produce 32 and 10 million tonnes of coal a year, respectively. The main markets for Bogatyr Komir are the heat and power plants in Russia (primarily, in the Urals Region; 42% of shipments) and Kazakhstan (in the first place, the Ekibastuz power plants; 53%), as well as housing and utilities enterprises (5%).

The programme is now in its final phase, which will see it change over fully to the cyclical-flow coal mining technology. The mine will have new trunk conveyors with crushing facilities and transfer points and overhead conveyors to transport coal from the mine to the surface. A heavy loading complex is being built in the mine, and the fleet of heavy dump trucks will be expanded. These changes will require the largest chunk of the investment the company is making in its overhaul.

In December 2011, EDB signed a contract to provide up to US $50 million to Bogatyr Komir over seven years for the purchase of new equipment.

This made it possible to replace outdated and buy new equipment to expand Bogatyr Komir’s production facilities. As a result, the company’s gross output increased to around US $46 million a year. The project thus adds US $42 million to the annual output of Kazakhstan and Russia, and creates over 200 permanent jobs in related sectors of their economies. In November 2013, EDB and Bogatyr Komir signed a further agreement under which the Bank is providing a seven-year loan of around KZT 3.8 billion (equivalent to US $25 million) to Bogatyr Komir to purchase equipment and machinery. The additional financing was needed because the company is spending US $40-50 million annually on its upgrade.

Experts estimate that, if both loans are fully utilised, the project will generate additional trade between EDB member states worth US $162 million a year.

The objective of the project, which is expected to have significant economic and integration effects, is to develop and modernise production at this Russian-Kazakh enterprise, which will increase coal shipments to energy sector companies in Russia and Kazakhstan that are traditionally the main markets for Bogatyr Komir. Over the period of the loan, Bogatyr Komir will supply products worth over US $1 billion to Russian enterprises alone. Moreover, this Kazakh company is planning to use one third of the loan to purchase equipment in the Customs Union partner countries.

EDB Member States

  • Russian Federation


  • Republic of Kazakhstan

    of Kazakhstan

  • Republic of Armenia

    of Armenia

  • Republic of Tajikistan

    of Tajikistan

  • Republic of Belarus

    of Belarus

  • Kyrgyz Republic