Abstract: The subject of this research is the projects for colonization of forest of Western Siberia by the Ural metallurgical industry in the late XIX – early XX centuries. During the 1890’s, Ural metallurgy was experiencing the shortage of charcoal, which was the main type of fuel for iron production. As the means for overcoming such problem, the expert community started discussing the strategies of supplying metallurgical plants with charcoal from the forests of Western Siberia, which had to be transported by railways. The projects found their implementation through Tavdinskaya Railroad, which was put into operation during the World War I. The concept of “frontier modernization” serves as the methodological foundation for this research. Applicable to the topic at hand, “frontier modernization” consisted in the attempts to retain the specialty profile of Ural metallurgy and its conventional energy by forming at borders of metallurgical Ural of the new development, but with implementation of new technological solution. This work is first within historiography to provide a comprehensive analysis of the projects on colonization of forests of Western Siberia by the Ural metallurgical industry. The conclusion is made that although the project was implemented, it did not produce the results forecasted by the expert community, namely the creation of free charcoal market and decline of circuit system, as it was implemented too late- in 1917. In the context of profound changed in the principles of organization of Ural metallurgical industry in 1920’s, this project was no longer economically viable.