Bloomberg reported that OAO Severstal, the largest Russian steel producer will invest as much as USD 2.8 billion to develop the Centralniy coking coal deposit it bought in September and a railroad project to transport the steelmaking raw material.

Severstal said the company will spend USD 1.6 billion to USD 1.8 billion to produce 10 million tonnes of washed coal a year from the site in Tyva region by 2017. It will also contribute as much as USD 1 billion to building a railroad to the untapped field by 2014 with the rest provided by Evraz Group SA and United Industrial Corp.

The two other companies have been developing neighboring deposits in the same Ulug-Khemsk coal basin near Mongolia.

(Sourced from Bloomberg)