Belon Group Included in Government List
OREANDA-NEWS. December 30, 2008. By the decision of the Government Commission for enhancing the sustainability of the Russian economy as of December 25, 2008, Belon Group was listed among 295 backbone enterprises to be offered state support.
The coal sector is represented by 6 companies, which include: Belon (79th position in the general list), Sibuglemet, SUEK, Russky Ugol, Raspadskaya, and Kuzbassrazrezugol.
Including Belon in the list of the RF Government was a logical decision, as the Company complies with all the criteria established by the Government to determine strategically important companies.
Belon is a large producer of coal and coal products (metallurgical and steam coal concentrate). The Group incorporates coal mines and open-pit mines with the total production capacity of over 9 mln tons of coal per year, as well as coal preparation plants, capable of preparing more than 14 mln tons of coal per year. The Company’s revenues in 2008 are estimated at 25 bln rubles. Belon is one of the largest tax payers in the Siberian Federal District. Over 8,000 people are employed at the Group’s enterprises.
The Company is a town-forming enterprise for the town of Belovo and for the Belovo District: it provides jobs for 20% of the population, and its share in the total tax revenues of these municipal formations is up to 30%.
For Belon Group, its listing among strategically important companies means a possibility of strengthening the positions of the business under the conditions of the financial and economic crisis, and of preserving its production facilities and human resources. Obtaining state support implies the use of not only credit instruments but also of other resources, such as government guarantees, interest rate subsidies, tax liability restructuring, government orders, taxation and tariff policy, etc.
Currently, the RF Government is working on a package of specific laws with regard to the financial and fiscal policies of the government to be pursued in the period of crisis. In this connection, the Company’s management hopes that already in the nearest future the decisions of the Government of the Russian Federation will help OAO Belon and other coal companies and their immediate partners cope with the current challenges and overcome their effects on the industry.
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