Interfax cited Mr Nikolai Matyushenko deputy head of the company's production development division as saying that the Severnaya Zvezda joint venture between MMC Norilsk Nickel and BHP Billiton aims to be producing 8 million tonnes of coking coal at the Syradasai field close to the Arctic port of Dikson in three or five years.

Mr Matyushenko said the production target is between 8 million and 12 million to 15 million tonnes per year.

He said that Severnaya Zvezda, which Norilsk Nickel controls, is exploring the field at present.

He added that "The geological work will take three years. Then the reserves need to be listed that'll take about a year and quotas for exports and domestic sales will be set."

Infrastructure like a coal terminal, power plant and concentrating plant will need to be put in place, and a fleet will be needed to ship the coal: Mr Matyushenko said eight or ten ice-class ships, deadweight 70,000 tonnes each, might bee needed.

(Sourced from Interfax)