Arktikugol - History

History

The first Soviet resolution concerning interests in coal mining in Svalbard was signed on 29 July 1920. In 1927, the predecessor of Arktikugol, Sojusljesprom, bought the closed coal mine Pyramiden from the Swedish coal company Svenska Stenkolsaktiebolaget Spetsbergen. In 1931, Sojusljesprom bought the coal mining company Russki Grumant Ltd., which owned the Grumant coal mine. At the same year Sojusljesprom proposed to establish a separate company for the coal mining in the Arctic and as a result on 7 October 1931 Arktikugol was established with its headquarters in Moscow. All rights and obligations of the Soviet Union on Svaldbard were transferred to the newly established company. This was in part to insure a Russian presence on the archipelago, since the Spitsbergen Treaty of 1920 insured that all countries to sign the treaty were given equally rights to natural resource exploitation.

In 1932, Arktikugol purchased N.V.Nederlandsche Spitsbergen Compagnie (Nespico), which owned the coal mine in Barentsburg.

In 1941, the operation of Arktikugol was stopped and workers were evacuated to Arkhangelsk in the Soviet Union due the World War II. The mining operations resumed in 1946 at mines Grumant and Barentsburg. At the same year, construction of the Pyramiden mine started. The mine was opened in 1956. In 1961, it was decided to close the Grumant mine. The mine was closed in 1962. The additional coal seam annexed to the Barentsburg mine was leased for 25 years from Store Norske Spitsbergen Kulkompani.

In 1968, 5 MW thermal power plant was commissioned in Pyramiden and in 1974, 7.5 MW thermal power plant was commissioned in Barentsburg. The backup diesel power plant at the mine Barentsburg was put into operation in 1990.

In 1981, it was decided to have an additional exploration of Grumant field's reserves. Proven coal reserves are estimated at more than 100 million tons. There are ideas to build a new mine at Grumant; however, no concrete plans are made available yet. In 1998 the company closed the mine at Pyramiden, and settlement became a ghost town like Grumant.