State Commission for Tenders has announced its decision to extend the deadline for submission of offers within the frame of the open tender for the state’s shares in UzbekUgol (Uzbek Coal) in accordance with the Presidential Resolution of 20 July 2007 No. 672.

The deadline of the tender for 35.55% stake in UzbekUgol Open Joint-Stock Company, the largest producer of coal in Uzbekistan, has been extended to 17 October 2007. The starting bid is US$30.57 million, the Office for Post-Privatisation Support of Enterprises of the State Property Committee said.

In identification of the winner, preference will be given to foreign investors prepared to offer the highest bid for the said shareholding, and taken on the largest volume of investment obligations, with due account to the existing investment needs of the enterprise (currently total US$232 million).

It is important to note that the tender was first announced in October 2006; however it had been annulled due to the absence of competitive offers. In April this year, the State Property Committee re-announced the tender on the same conditions, and the results were to be announced in the second quarter of 2007.

A representative of the State Property Committee noted that the decision to extend the tender deadline was founded by the need to examine the offers received from the potential investors in more detail, and the possibility of attracting some more offers.

UzbekUgol Open Joint-Stock Company is one of the divisions of the UzbekEnergo State Joint-Stock Company. It has been the only enterprise in Uzbekistan engaged in extraction and supply of coal to consumers in Central Asia since 1947. The company has extensive contacts with coal-producing and consuming enterprises.

UzbekUgol runs production on three coal mines in Uzbekistan: Angren, Shargun, and Baysun. Annual production volume totals some 3 million tones.

According to the expert estimates, the demand for coal in Uzbekistan makes up about 4 million tones yearly. The main consumers of coal are the enterprises of UzbekEnergo, which consume some 3 million tones yearly.

The stability of works, and the prospects of developing coal-mining industry in Uzbekistan are underpinned by developed infrastructure located in the industrially developed districts with high population density, qualified workforce and well-developed network of transportation communications, which opens the opportunities to expand and raise the efficiency of mining works.