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Meeting with Kolmar CEO Sergei Tsivilev

February 27, 2018, The Kremlin, Moscow

Vladimir Putin met with CEO of the Kolmar Coal Mining Company Sergei Tsivilev to discuss the company’s interim results and its development prospects.

Kolmar is a large holding comprising industrial enterprises engaged in the production and processing of coking coal, which are based in the Republic of Sakha (Yakutia).

* * *

President of Russia Vladimir Putin: Mr Tsivilev, good afternoon,

I have been informed about the successful development of your company, Kolmar, which operates in Yakutia. You started from rather modest positions and have made significant progress over a short period. I know the company also puts great emphasis on its social responsibility programmes.

Kolmar CEO Sergei Tsivilev: We have indeed developed two mining and processing facilities over a very short term, thanks to the huge efforts of our staff. Construction of a terminal in the Khabarovsk Territory is going very fast. We are developing a maintenance and production base that will serve as a foundation for the development of not only southern Yakutia but, to a large extent, of Russia’s Far East as well.

Kolmar is a full-cycle company. We conduct the entire range of work, from exploration and production to processing and railway transportation, transhipment in ports and export of our coal. Our company’s mission is to restore the positions of Russian premium-quality coking coal in the Asia-Pacific market.

Our first priority is the team, because people have to work in difficult conditions: in the last two months, the temperature often dropped to minus fifty and below; the equipment broke down, but people continued working and made all the deadlines. For example, we build a plant in 10 months. In China, similar plants take at least 12 months.

Therefore, we take good care of our people. We have built an ice arena and are building a lot of housing. We support sports: the local ice hockey team, chess, and football. We also support the Solovushka music company, which gives excellent performances, even at international forums.

We are perfectly aware that our greatest asset is the people. Whatever we do, whatever new technologies or equipment we have, they are a dead weight without human capital; that is why human capital comes first.

Vladimir Putin: What are your plans?

Sergei Tsivilev: We started in 2014 almost from scratch. Today we already have a mine, a quarry, one operating enrichment plant, and another one to be completed in a month. Then we will have an enrichment capacity of eight million tonnes. In 2017, we extracted 4.5 million tonnes of coal. Now we have purchased a lot of equipment, and in 2018, our target is 6.5 million tonnes of coal.

Last year, Prime Minister Dmitry Medvedev launched the construction of a 12-million enrichment plant and three mines. All of this should be completed by the end of 2021, and we will then become number one in Russia for premium coking coal.

Vladimir Putin: How many employees do you have?

Sergei Tsivilev: Today there are 3,000 people. By 2021, 7,000 people will work in southern Yakutia, and another 1,000 at the port – a total of 8,000 people will be employed at the company.

Vladimir Putin: What is the average salary?

Sergei Tsivilev: For today, it is 83,000 rubles.

Vladimir Putin: Good.

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February 27, 2018, The Kremlin, Moscow