Uzbekistan is overhauling its coal sector with a package of market-oriented reforms, including the abolition of state price controls from 1 June 2026, a $494 million investment in the Nishbosh coal deposit and plans for a 1.4 gigawatt power station — all presented to President Shavkat Mirziyoyev in a sector briefing.
The administrative price regulation that has governed Uzbekistan’s coal market will be eliminated, with coal also removed from the list of strategically significant social goods subject to state pricing. From June, coal prices will be determined by supply and demand and traded through exchange-based auctions. Power stations and large consumers will purchase coal through a request-for-proposals mechanism at average exchange prices for the relevant reporting period. The government expects this to create an open competitive environment, attract new investment and incentivise producers to increase volumes and improve quality.
To protect households and public institutions during the transition, a separate distribution mechanism will be introduced. Suppliers will be selected through an electronic system based on criteria including warehouse capacity, equipment availability and tax rating. Railway freight tariffs will be unified to eliminate regional price disparities. Vulnerable families registered in the Social Registry who purchase coal through the mycoal.uz platform will receive one-off financial assistance of up to 600,000 soum between June and December 2026.
New quality and environmental standards will also be introduced for imported coal, covering sulphur content, calorific value and other parameters. Coal imports failing to meet the standards will be banned from sale or use on Uzbek territory, and all future coal imports will be conducted exclusively by rail.
On new production, the Nishbosh deposit holds total reserves of 233 million tonnes with a projected annual extraction capacity of 10 million tonnes. The $494 million investment will create 880 permanent jobs. Adjacent to the deposit, a new 1.4 GW power station is proposed — four 350 MW ultra-supercritical units requiring $1.3 billion in investment, generating an estimated 9.8 billion kilowatt-hours of electricity annually and saving 2 billion cubic metres of natural gas per year. Construction will create 1,500 temporary jobs and 310 permanent positions.
Uzbekistan’s coal output has grown from an average of 3.1 to 4 million tonnes in the first 25 years of independence to 10 million tonnes over the past nine years. The target for the coming autumn-winter season is 11 million tonnes. The number of private coal producers has reached 18, having invested $117.2 million and produced 2.4 million tonnes between 2023 and 2025. Mirziyoyev approved the proposals and issued instructions to responsible officials.
