50
number 3).
Description of the subsurface allotted for use: The site is located in Pozharsky municipal district urban-type
settlement Luchegorsk.
Type of License: For the extraction of lignite.
Main provisions of the License concerning obligations of subsoil user with an indication of the period of
performance of the specified obligations: The amount of extracted lignite is set as not less than 1.5 million tons
of coal per year.
Obligatory payments to be made by the user of subsoil under the terms of the license: Subsoil user is
obliged to pay tax on the extraction of minerals - the size of the tax rate determined in accordance with the Tax
Code, as well as other charges and fees, a fee for the land and pay for the negative impact on the environment, in
the amount and terms set by the legislation of the Russian Federation.
Implementation of the Issuer, its subsidiaries and affiliates obligations resulting from the licenses, as
well as any factors that may adversely affect fulfillment of license obligations with the probability of their
occurrence: the obligations resulting from the license are fulfilled. Factors which may adversely affect the
performance of obligations under the license are absent.
3. License: POZh 00787 OShch
Object subsoil: Luchegorsk deposit of andesite porphyrite (Southern Section).
Legal entity that obtained a license
Full name: Joint Stock Company "Luchegorsky Mine"
Abbreviated name: JSC "LUR"
Location:
township Luchegorsk, Pozharsky district, Primorskiy Kray, Russian Federation
TIN: 2526006224
OGRN: 1152721004963
License number: POZh 00787 OShch
Date of issue: 10/07/2015
Term of the license: 09/15/2024
When the license conditions are fullfilled, the license will be extended in accordance with the current
legislation.
Grounds for License issue: Order of the Department of Natural Resources and Environmental
Protection of the Primorsky Kray from 07/10/2015 No 114
Description of the subsurface allotted for use:
The site is located in Pozharsky municipal area.
Type of License:
For extraction
Main provisions of the license concerning subsoil user obligations indicating the period of performance
of the specified obligations: Provide annual production of up to 500 m3. Production quota is agreed annually.
Obligatory payments to be made by the user of subsoil under the terms of the license: Subsoil user is
obliged to pay tax on the extraction of minerals - the size of the tax rate determined in accordance with the Tax
Code, as well as other charges and fees, a fee for the land and pay for the negative impact on the environment, in
the amount and terms set by the legislation of the Russian Federation.
Implementation of the Issuer, its subsidiaries and affiliates obligations resulting from the licenses, as
well as any factors that may adversely affect fulfillment of license obligations with the probability of their
occurrence: the obligations resulting from the license are fulfilled. Factors which may adversely affect the
performance of obligations under the license are absent.
b) Mineral processing
Main assets used for processing: JSC "LUR" is not processing coal. Crushing and grading plant JSC
"LUR" is designed to produce rubbly products.
The issuer, its subsidiaries or affiliates do not engage any contractors to process mineral resources
c) Product sales
Permits granted by authorized government agencies for the implementation of minerals and their
products, quotas, including for export: The need to obtain government approval for the implementation of
minerals
and their products, quotas, including for export, the federal legislation has not been established.
3.2.8. Additional Information on Issuers, the Primary Line of Business of
which is Rendering Services
The primary line of business of the Issuer is not
rendering services
51
3.3. Plans for the Issuer's Future Activities
Brief description of the Issuer's plans in relation to its future activities:
In accordance with the Articles of Association, the purposes of the Issuer's activities are as follows:
- Creating conditions for reliability and safety assurance of generating facilities;
- Implementing the national policy in the field of the hydro power industry;
- Creating adequate conditions for the effective functioning of the wholesale electricity (capacity) market;
exercising effective operation and centralized process management of the hydro power facilities; pursuing a
uniform investment and capital raising strategy to address system-wide tasks of hydro power development;
- Developing and implementing research and technical policy and introducing new, advanced engineering
facilities
and technologies, including renewable energy sources development;
- Generating profits.
Sources of future income:
The Issuer plans to gain in future profits from its core business: production and sale of electricity and
capacity on the retail and wholesale electricity and capacity markets.
Plans for organising new production, expanding or reducing production, developing new types of
products, upgrading and reconstructing fixed assets:
are based on the Company's business plan for the 2016-2020 years of the investment
program of
the Company for 2016 (Protocol of the Board of Directors from 25/12/2015 No 229).
The investment program project provides in 2016:
Introduction of additional capacity in the volume of 395.5 MW and 469.6 Gcal/h.
Financing of the Company investment projects in the amount of 65,649.8 million Russian rubles, including:
• Technical reconstruction and modernization projects — 34,975.2 million Russian rubles;
• Complex reconstruction of Sayano-Shushenskaya HPP — 632.6 million Russian rubles;
• Priority projects in the Far East (TPP in Sovetskaya Gavan, Sakhalin SDPP-2
(1st stage), Yakutsk SDPP-2 (1st stage), 2nd stage of Blagoveshchenskaya TPP), implemented in
execution of Decree of the President of the Russian Federation No. 1564 dated November 22, 2012 On Further
Development of Joint-Stock Company Federal Hydrogeneration Company ― RusHydro ― 26,570.9 million
Russian rubles;
• Construction of Zelenchukskaya HPP-PSPP – 1,620.6million Russian rubles.
•a feasibility study of flood control projects HPP in the Far East (Lower Zeya HPP Seleindzinski HPP) –
300.0 million Russian rubles.
• Other projects — 550.5 million Russian rubles.
Also in 2016, the Company plans to finance investment projects implemented by subsidiaries, as well as
R&D in the amount of 34,124.92 miilion Russian rubles.
The Issuer does not lead the development of new products.
Information on a possible change in the primary activity:
The Issuer does not plan to change its primary activity.
3.4. The Issuer's Participation in Banking Groups, Banking Holdings,
Holdings, and Associations
The Issuer is not involved in banking groups and bank holding companies and holding companies.
The Issuer is involved in associations and non-profit partnerships, and is also attributable to the civil law
associations.
A summary of the non-commercial partnerships and associations PJSC "RusHydro"
No
Name of the non-profit
organization/association
Role
(place)
and functions
of the Issuer
in
the
organization
NP
sphere
of
activity/
functions of the Issuer in the
organization
Term
of
Issuer's
participation
Non-residents of RF