It is reported that Russian steel producers Evraz, Severstal and mining company Enisey Production Company a part of United Industrial Corporation are to create a consortium to construct the Kyzyl-Kuragino railway line to the giant Ulug-Khem coal basin in Tuva, Siberia, Russia.

Mr Viktor Basargin Russia regional development minister said the 418 kilometers long railroad is expected to cost a total of RUB 130 billion of which more than RUB 49 billion will consist of state investments, while private investments will account for RUB 81 billion. The railway line is expected to be put into operation in 2014.

The railway line is to link the Ulug-Khem coal basin situated in the Tuva region to the Russian railroad network. EPC was the first company to be granted a license for the basin Elegest coking coal deposit, which is one of the largest undeveloped coalmines in the world, with reserves of one billion tonnes of high quality coking coal. As a result, EPC in particular needed to start construction of this railway but implementation of the construction project was delayed.

Fields of the Ulug-Khem basin are also held by Evraz which in March this year obtained rights to the Mezhegey coal deposit with 213.5 million tonnes of reserves while in October it obtained rights to mine the Eastern Field of the western part of the basin which holds 569 million tonnes of reserves. Meanwhile, in September this year Severstal won the license for the western part of the Central Field of Ulug-Khem basin with 693 million tonnes of reserves.