Dear friends! I am happy to welcome you on the pages of the Kemerovo Region Investment Profile uzbass is a leading industrial re! the new generation development tool for us gion in the Siberian Federal Ok! that integrates educational, research and Krug. A relatively small area of the industrial activities. Its core activities will Kemerovo Region (95,500 sq. km) con! include: deep coal conversion, coal bed tains a powerful diversified cluster of in! methane extraction, further development dustries, constituting one!third of the fixed of mine equipment engineering, develop! capital assets of Western Siberia. ment and implementation of high technol! In the opinion of RF President Dmitry ogy in the areas of medicine, education, Medvedev the key vector of the national nature management, as well as solution of economy development today is towards the environmental problems. As of today, the upgrade of all its sectors. data bank of the park contains more than As a way of its implementation we pri! 100 projects that are ready to launch. Cur! oritized Kuzbass economy development as rently, twenty two companies received the a joint effort of the local government, pub! formal status of Kuzbass technopark resi! lic and private sectors. dents since their projects are already in the Kuzbass is a coal mining region. Of pipeline. course, we will not discontinue mining We have been the first in Russia to coal. But our new target is not simply to launch coal bed methane extraction and continue producing coal, but also to pro! use project which we are doing jointly with cess it on site. OAO Gazprom. In February 2010 Russian The focus point of the future innovative President Medvedev took part in the launch infrastructure will be Kuzbass technopark – of this breakthrough project. 2 Kemerovo Region Investment Profile Today methane extraction in Taldin! nearly five!fold increase of holiday!mak! skiy coalfield amounts to 12,000 cubic ers (from 42,000 to 240,000 people). Today meters per day; seven productive holes have Sheregesh is perceived as an international been drilled, a gas!filling station and a gas! level recreational facility. We have got ev! to!heat conversion boiler station are in op! erything to make this happen, including eration together with a modular power sta! unique nature and climate of Mountain tion. By 2015 we can be close to commer! Shoria land. cial methane extraction in the amount of Among other projects to have a sizable 1.5 billion cubic meters. social impact is the construction of the Re! For the last two years nearly 1 billion gional Centre of mountain skiing and rubles has been invested into the project, snowboard on the Tumannaya (Foggy) the overall cost project amounting to 85 bil! Mountain in Tashtagol. We have already lion rubles. arranged several ski runs, some sports fa! It means Kuzbass is becoming a differ! cilities, and ski lifts. This centre is sched! ent region. Not just a coal place they used uled to be used to train the Russian sports! to call it, but a coal and methane region. men for the 2014 Olympic Games in So! Implementation of all the regional in! chi. vestment and innovative projects is in These and other projects will lay the sync with a task of raising the standards foundation for further sustainable devel! of living of the population. The major opment of the economy and the social thing is how you treat your people. At the sector. same time a person should feel this from As a way of elimination of risks regard! the moment he was born. For this pur! ing inward capital investments in the econ! pose we are building a state!of!the!art omy, we take- measures at the regional lev! medical perinatal care centre in Ke! el to ensure investor security. This includes merovo. More than 1 billion rubles has state support, tax breaks, and plenty of other already been invested into the project im! measures. The regional budget envisages plementation. funds to support the most effective and fast! In the few years to come we will focus payback projects in the real sector of the our construction efforts on low!rise hous! economy. ing. Since 2007 Kuzbass has been imple! The leading Russian holding and mul! menting a pilot project of comprehensive tinational companies have their vested in! territorial development ! construction of terests in Kuzbass. The regional economy satellite town Lesnaya Polyana (Forest is integrated into the economy of more than Glade). It is the town of the future, a place 80 other countries of the world. And, as ex! for the young. perience has shown, the Kemerovo Region This new town is being built virtually continues to attract interest. from the scratch. As of today 700 families Our goal is make the region transpar! are among the new dwellers. Overall, there ent for investors, creating the favorable will be 35,000 residents in the town. In the conditions for inward capital flows. coming years we will continue building I am convinced that a constructive di! both apartment units and individual alogue with the representatives of the busi! homes, together with community and en! ness community will enable Kuzbass gineering infrastructure. turning into a promising investment mar! We place a strong emphasis on develop! ket thus contributing to the further eco! ment of the tourist and recreational poten! nomic growth of Kuzbass, Siberia and tial of the region. The focus here is on win! entire Russia. ter sports. Thus, in Tashtagol, we continue Yours faithfully, construction of the mountain ski resort Aman Tuleyev, Sheregesh, the largest one east of the Urals Governor, Mountains. For the last six years we saw a Kemerovo Region 3 The region in brief The region in brief The Kemerovo Region (another name of the region - Kuzbass) is located in the south-east of Western Siberia, almost midway between western and eastern borders of the Russian Federation. he administrative boundaries of the of the population of Russia. Population!wise, Kemerovo Region are land based. In the Kemerovo Region places 2nd in the SFO Tthe north it borders on the Tomsk Re! and 14th across Russia. gion, in the east – on Krasnoyarsk Krai and Population density – 29.5 per sq. km. Republic of Khakasiya. In the south the Kuzbasss places 1st in the Siberian Federal boundary lines stretch along the principal ridg! Okrug by population density. es of Gornaya (Mountainous) Shoria and the Administrative divisions: the Kemero! Salair Range with Republic of Altai and Altay vo Region is divided into 223 municipali! Krai; in the west – it crosses the flat ground ties, including 16 urban okrugs, 18 mu! bordering on the Novosibirsk Region. The nicipal districts. The principal regional extent of the Kemerovo Region, north to south, city is Kemerovo with the population of is almost 500 km, west to east ! 300 km. 526,200. There are 7 cities in Kuzbass with The Region acquired its current bound! the population exceeding 100,000. The aries on January, 26th, 1943. largest municipalities are urban okrugs: The Kemerovo Region area totals 95,500 Novokuznetsk (563,600) and Proko! sq. km that accounts for 4% of Western Sibe! pievsk (211,000). ria territory and 0.56% of the RF territory. The share of urban population in the Ke! Area!wise, the Kemerovo Region places 10th merovo Region is 84.9%, agricultural popu! in the Siberian Federal Okrug (SFO). lation accounting for 15.1%. By the level of Population – 2,820,600. It accounts for urbanization Kuzbass places 1st in the Sibe! 14.4% of the SFO population, with 2% share rian Federal Okrug. 4 Kemerovo Region Investment Profile The economic potential of the Kemerovo Region The Kemerovo Region is among the most developed industrial regions in Siberia possessing an immense natural, industrial, and raw materials potential he Kemerovo Region is rich in vari! on ferrous metallurgy, coal industry, and ous mineral resources. chemistry. Kuzbass accounts for: 59.7% of TThe total geological coal reserves of the Russian coal, 12.8% of steel, 13.1% of Kuznetsk Basin down to 1800-meter depth rolled metal, 65% of broad gauge railway are estimated to be 733,400 million tons in! rails, and 100% of tram rails. cluding 724,300 million tons that meet the Coal mining in Kuzbass is a multisectoral requirements for mineable deposits (by seam complex including 110 coal!mining enterpris! thickness and ash content of coal). The Ke! es and 35 coal treatment plants. Possessing merovo Region accounts for 73% of such coal highly productive coal reserves (both in terms The potential of iron reserves in Russia. of quality and geo!mining conditions), the coal ore mining in Gorno- The western part of Kansk!Achinsk lig! sector of Kuzbass have chosen a route of in! Shor area is estimat- nite deposit is located in the north!east of the tensive coal mining. The coal sector of the re! ed at 2,168.7 million region. The lignite reserves are estimated to gion is completely privately owned. tons, including 639.5 be 64,200 million tons. The iron and steel sector of Kuzbasss has a million tons in the Deposits of iron ore in the Kemerovo Re! clearly marked domestic market specializa! industrial categories gion are mainly concentrated in Gornaya tion. It includes such major companies as: A + B + C Shoria and Kuznetsk AlaTau. There are de! OAO Novokuznetsk Iron!and!Steel Plant posits of manganese, gold, silver, tungsten, (NKMK), OAO ZapSib Iron!and!Steel Plant mercury, molybdenum, cobalt, nickel and (ZSMK) with a complete foundry cycle, OAO other minerals in Kuzbass. Guryevsk Iron!and!Steel plant, OAO Koks, The available reserves of nonmetallic min! OAO Kuznetsk Ferroalloys Works.