Investment prospects

Investment attractiveness of the Chukotka Okrug is based on the following factors:

1 High profitability of export to Asian-Pacific countries is the most prominent factor for the Chukotka coal-mining industry;
2 Possibilities of coal supply to Primorsk Krai, the Magadan Region and the Yakut Republic;
3 Comparatively low (for the Extreme North) prime cost of coal production and transportation due to the fact that the largest coal reserves are deposited close to the surface and mostly in the coastal areas;
4 Several promising projects are being developed, such as construction of a plant producing brown coal fuel briquettes which when used as stove fuel are much more efficient and economic. This will allow to increase the value of industry production by several times;
5 Coal industry is supported by the regional government that has invested 400 million rubles in modernization and reconstruction of the existing plants and their equipment;
6 A 20-year prospect of stable growth of demand for power station coal and its price by 1.5-2% a year, for coking coal, by approximately 3% a year is forecasted.

The estimated increase of floating assets in the Checotah Okrug coal-mining industry by the year 2020 is expected to reach no less than $115 million. This figure might considerably grow if the industry takes advantage of the favorable export situation.

Anadyr

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COMMENTS

The program of economic development in Chukotka can be carried out, considers vice-premier of government CHAO M. Sobolev.

First of all, the long-term program leans on resources of peninsula. Let’s begin that geological resources of Chukotka are explored today on 10 %-17 %. The next regions are explored much better. And even on these, tentative estimations resources here can be found. The proved resources of gas on the Priosernoe deposit - 7,3 billion cubic meters. Oil resources are estimated approximately in 10 million tons, the proved stocks make 4 million tons of them. They are dispersed on small Fields, such, as Hatirskoe, where extraction is conducted by "Sibneft" company. But it is not necessary to dismiss a shelf – it’s insufficiently studied yet, but there are data, that it’s resources can make up to 14 billion tons of conditional fuel. Exxon Mobile Company in similar ice conditions, in Baffin bay has constructed 7 platforms. What prevents to construct them here?
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Reindeer breeding can be profitable: E. Marochkin acting on the head of agriculture and foodstuffs department makes comments.

There was a moratorium on an industrial slaughter of deers in district till 2006. But now it is removed, farms have allocated a contingent for commodity slaughter this year. It is planned to hand over in a trading network about 9 thousand deers this year. Within the limits of national project the agrarian and industrial complex have got slaughter area on terms of financial leasing which is assembled in Kanchalan. Basically its value is in that correctly cut production will receive a trade look and will answer all established norms. The livestock of deers for September, 1st - from above 183 thousand. It’s below the level of 1990 (490 thousand heads), nevertheless, in Chukotka a livestock grows on faster rates, than on Yamal, and it’s our main competitor. Potential market - not only Vladivostok, but also Japan, Korea, China. Reindeer breeding is, at least, preservation of a traditional way of life of native people and food safety of region and when sales volumes become great enough, branch can turn in profitable.
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