En+ Group, a leading Russian diversified mining, metals and energy conglomerate and Shenhua Group, the China’s largest coal company, agreed on the next stage of cooperation for the development of the Zashulanskoye Coal deposit in the Transbaikal, Russia.

En+ Group’s CEO Maxim Sokov and Shenhua’s Chairman of the Board of Directors Dr. Zhang Yuzhuo signed the agreement witnessed by President of Russia Vladimir Putin and President of China Xi Jinping. In March 2013, En+ Group, Shenhua and China Development Bank agreed on cooperation to develop coal, energy and infrastructure projects in Russia.

In December 2013, Razrez Ugol LLC, a 50/50 joint venture between En+’s subsidiary Vostsbiugol and Shenhua acquired (RUR246.9 mln) the license to explore for coal and develop the Zashulanskoye deposit in the Transbaikal Territory. The joint venture is scheduled to have the exploration completed and approved by the authorities within the next two years in order to confirm the reserve estimate; the JV will also prepare the required design documentation.

En+ and Shenhua are poised to spend more than US$1 billion in estimated investments.