SUEK

Analysis of alternative development options and development of business plans for major investment projects

Project Description

SUEK - Siberian Coal Energy Company - the largest coal mining company in Russia, owns a significant part of power generating assets in Russia.
More information about the company: www.suek.ru

Statement of the Problem

The continuation of cooperation between ALT RC and "SUEK" companies was a series of projects on the analysis of development options and development of business plans for major investment projects (investments of $  100 to $  250 million), including:

  • Сonstruction of a coal terminal in the port of Vanino (Far East);
  • The development of coal mining in the coal mine Urgalskiy;
  • The development of the mine named after Kirov and Kirov processing plant;

What we have done

For each project, the consultants analyzed together with the management all the significant assumptions and parameters of the projects:

  • Configuration options for technological projects and the necessary levels of investment;
  • Evaluated the market potential of the projects on the basis of projections of balance of production (coal mining) and consumption of power (energy), pricing and transport parameters of the market and the competitiveness of products;
  • Evaluated the options for implementation of projects (3-5 variants), based on their market and production opportunities;
  • Built a forecast of changes in costs and assessed the possibility of its improvement;
  • Established project timeline and schedule of investments, respectively, and output of production at full capacity;
  • Considered the possible risks of projects and estimated the probability and consequences of their occurrence;
  • On the basis of the economic modeling was evaluated the cost-effectiveness of all options of projects and analysis of their sensitivity to changes in key parameters of the implementation;

Results

According to the results of the project the management of the company was able to make an informed decision to choose the most efficient way to implement the projects.
According to the project of “Vaninsokiy bulk terminal” was also developed a business plan to the potential investors, using which the company was able to attract additional external funding.


Reference


"We assess the results, efficiency and accuracy of " ALT RC " employees meeting the best international standards."

Vladimir Preobrazhensky
Chief Financial Officer "SUEK"