September 07, 2008

Georgia’s sea seizures pose threat to Abkhaz coal industry

Apsnipress news agency quoted Mr Daur Arshba, an Abkhaz lawmaker, as saying that a Turkish Abkhaz company Tamsaş quarrying coal in Tkvarcheli in Georgia faces bankruptcy because of an inability to export it. As per report, the territorial waters and ports of breakaway Abkhazia are closed under Georgian legislation.

Mr Arshba said that “Tamsaş may stop operations. Coal stocks are waiting to be exported, but it is impossible because of the many seizures of vessels by the Georgian side.”

Mr Arshba said that the Abkhaz National Security Council should immediately discuss the issue. He said that 70% of Tkvarcheli’s municipal budget came from coal mining related taxes. New 678.4 million tonne coal discovery increases Red Hill Energy's Mongolian coal inventory to more than 1 billion tonnes

According to the Georgian Border Police, over 25 vessels have been detained by the coast guard for illegal maritime activities in the Abkhaz section of Georgia's territorial waters in the past 2 years. A vessel flying the Cambodian flag, loaded with coal from Tkvarcheli, was seized by the Georgian coast guard on October 21st 2007. Another vessel, also loaded with coal, was seized in July 2007.