COAL MINE PROJECT OPPORTUNITY

CMM Recovery and Utilization

Saqnakshiri, Georgian Industrial Group (GIG)
Tkibuli-Shaori, Georgia

OVERVIEW OF COAL MINE PROJECT OPPORTUNITY:

The Tkibuli-Shaori coal region encompasses an area of 44.2km2 and is approximately 50 kilometers northeast of the city
of Kutaisi, the capital of Imeriti. Coal mines have been active in this area since 1932.

The operation at Tkibuli is an underground mine with shafts 300-900 meters deep. In 2008, coal extraction in the Tkibuli
coal mine was expected to reach 350,000 tons. According to a recent resource estimate conducted for the Tkibuli coal
deposit, there are about 407 billion cubic feet (Bcf) of recoverable methane.

The Georgia CMM Project intends to establish a commercial program for the recovery and utilization of CMM, to
increase coal mining safety and efficiency through improvements to the mine ventilation and gas drainage systems and
by installation of infrastructure and co-generation plants for the production of heat and power.

ESTIMATED ANNUAL EMISSION REDUCTIONS: .123 MMTCO2E

PROJECT DETAILS
• Name of Project: CMM Recovery and Utilization
• Name of Mine: Tkibuli-Shaori Mine
• Type of Ownership: Private
• Have other pre-feasibility or feasibility reports been
prepares for this site?: yes

MINE INFORMATION
• Mine owner :Saqnakhshiri
• Parent company: Georgian Industrial Group (GIG)
• Status of mine: active
• Type of mine: underground
• Mining Method: longwall

TYPE OF ASSISTANCE SOUGHT

• Financial Assistance
• Technical Assistance
• PROJECT FINANCES
• Projected capital costs: US$ TBD
• Projected operation and maintenance costs for fully
implemented project: US$ TBD

Location Map
PROJECTED COAL PRODUCTION AND METHANE EMISSIONS
YEAR 2009 2010 2011 2012 2013 2014 2015 2016
Coal (tonnes/yr) 300,000 360,000 420,000 480,000 540,000 600,000 660,000 720,000
Methane (Mm3/yr)
Emitted from ventilation system(s) 4.24 5.09 5.94 6.79 7.64 8.49 9.34 10.19
Liberated from drainage systems 9.97 9.97 9.97 9.97 9.97 9.97 9.97 9.97
Vented to atmosphere (drainage) 0 0 0 0 0 0 0 0
Total Methane Emissions 4.24 5.09 5.94 6.79 7.64 8.49 9.34 10.19

PROPOSED TECHNOLOGIES

(Modified from: GE, 2008)

Power Generation Example Flow Design

MARKET ANALYSIS / DEMAND ANALYSIS

As part of the Georgian government’s rural gasification initiative, methane recovered from the mines not used for the
mine’s energy needs is expected to be utilized by neighboring communities and commercial enterprises as a clean fuel
for producing income and fostering energy efficiency and security, including a significant reduction of greenhouse gas
emissions.

FOR MORE INFORMATION, CONTACT:

Giorgi Chikovani
c/o Georgian International Energy Corporation
III Turning of Delisi, No 22
Tbilisi, 0177, Georgia
Telephone: (995 32) 210 187
Fax: (995 32) 210 189
g_chikovani@giec.ge

DISCLAIMER: The information and predictions contained within this poster are based on the data provided by the site owners and operators.
The Methane to Markets Partnership cannot take responsibility for the accuracy of this data.