MINEX Forum

Tag: Coal Exports

  • Kazakhstan Plans 11% Rise in Coal Output to 128.9 Million Tonnes in 2026 as Investment Surges and New Licences Come to Market

    Kazakhstan Plans 11% Rise in Coal Output to 128.9 Million Tonnes in 2026 as Investment Surges and New Licences Come to Market

    Kazakhstan’s mining operators plan to increase coal production by 11% in 2026, targeting output of 128.9 million tonnes against the 115.9 million tonnes extracted in 2025 — itself a 7% increase on the prior year — according to Energy Minister Yerlan Akkenzhenov, speaking at a government session.

    The accelerating production trajectory is backed by a significant uplift in sector investment. Approximately 553.5 billion tenge is earmarked for the coal industry in 2026, nearly doubling the 305 billion tenge invested in 2025 according to data drawn from mining contract work programmes. Before the end of the year, the Ministry of Energy also plans to hold an auction offering subsoil use rights across approximately ten coal deposits, signalling continued confidence in the sector’s expansion.

    Kazakhstan holds the world’s tenth-largest coal reserves, with 33.6 billion tonnes of the fossil fuel contained within its subsoil — sufficient to sustain extraction at current rates for more than 300 years. The country’s coal base underpins both its domestic energy system and a growing export trade.

    Of the 115.9 million tonnes produced in 2025, 85.9 million tonnes were directed to domestic consumption, serving the municipal heating sector, power generation and industrial users. A further 30 million tonnes were exported, with Russia, Poland, Uzbekistan, Turkey, India and Malaysia among the principal destination markets.

  • Kazakhstan Coal Production Declines: Impact on Exports and Industry

    Kazakhstan Coal Production Declines: Impact on Exports and Industry

    From January to July this year, the Republic of Kazakhstan extracted a total of 65 million tons of hard coal, encompassing both brown coal and coal concentrate, as reported by energyprom.kz. This figure reflects a decrease of 2.1% compared to the previous year. The primary coal mining regions in the country, Pavlodar and Karaganda, contributed significantly, accounting for 92% of the nation’s overall coal, lignite, and coal concentrate production. In Pavlodar, coal production reached 39.2 million tons, marking a modest increase of 0.5% from the previous year, while the Karaganda region produced 20.6 million tons, representing a decrease of 3.3%. The Abay region secured a place in the top three leading regions with a production of 4.2 million tons, albeit experiencing a 10.3% decline year-over-year.

    For the entire year of 2022, Kazakhstan produced 117.8 million tons of coal, indicating a 1.4% increase from the previous year. Directly, 60.4 million tons of hard coal were extracted, a decrease of 1.7% compared to the preceding year. This production also included 4.2 million tons of coking coal, marking a 6% decrease, and 8.9 million tons of energy coal, a 4% decrease. Brown coal (lignite) production decreased by 0.9%, reaching 2.6 million tons, while coal concentrate production experienced a substantial 12.4% decline, totaling 2 million tons.

    During the January-June period of this year, Kazakhstan exported 13 million tons of coal, valued at $370.8 million. In terms of quantity, this represented a 20.4% reduction in exports, and in terms of value, an 18.9% decrease. Within these exports, 8.3 million tons of coal were directed to CIS countries, marking a 24.2% decrease compared to the previous year. Notably, Russia emerged as the primary importer of coal from Kazakhstan, accounting for 7.4 million tons and a 27.2% decrease year-over-year. The top three importing countries also featured Kyrgyzstan and Uzbekistan. The rest of the world received 4.7 million tons of Kazakh coal, experiencing a 12.7% decrease from the previous year. In monetary terms, these exports declined by 12.3%, amounting to $264 million. Among these exports, prominent importers of Kazakh coal included Poland, Latvia, and Turkey.

  • Kazakhstan will limit coal exports in the face of its reduction

    Kazakhstan will limit coal exports in the face of its reduction

    Kazakhstan is set to impose restrictions on coal exports in response to declining output. A draft government decree is being finalized, intending to exclusively grant coal mining and processing companies the right to export coal from the country. Turar Zholmagambetov, deputy chairman of the industrial development committee of the Ministry of Industry and Infrastructure Development, revealed that this measure is being taken to counteract intermediary firms that purchase coal at domestic prices and resell it abroad at higher rates. The decree aims to restrict such activities and grant export rights only to specialized entities involved in coal production and processing.

    This resolution is expected to be adopted in September after coordination with government bodies and the Atameken National Chamber of Entrepreneurs. Zholmagambetov acknowledged that some intermediary firms affiliated with coal mines will still be permitted to sell coal abroad if they maintain a legitimate coal supply chain.

    In the period from January to July, coal exports from Kazakhstan dropped to 18.3 million tons, down by 1.5 million tons (7.5%) compared to the same period in 2022. The Ministry of Industry and Infrastructure Development has yet to predict the extent to which these new restrictions will impact coal exports.

    During the first seven months of the year, Kazakhstan produced approximately 61.7 million tons of coal, a 3.7% decrease from the previous year. Of this production, 36.8 million tons were supplied to the domestic market for energy purposes, while 3.9 million tons were allocated to the household sector. The Ministry of Industry and Infrastructure Development anticipates a demand of 9.1 million tons of coal for the 2023-2024 heating season, with 6.8 million tons for the population and 2.3 million tons for household consumers. However, as of August 28, only 2.2 million tons (24% of the plan) had been delivered.

    The draft government decree, signed by Prime Minister Alikhan Smailov in July, outlines that 26 Kazakh companies engaged in coal mining, processing, and enrichment will be granted exclusive rights to export coal. These companies include ArcelorMittal Temirtau, Satkomir Mining Company, Eurasian Energy Corporation Vostochny Mine, and several others. The licenses for coal export will be issued by the Industrial Development Committee and will be valid for one year. Licenses could be suspended in case of non-compliance with reporting requirements or provision of false information.

    It’s noteworthy that Kazakhstan plans to gradually increase coal exports to Uzbekistan post-2025 to reach 12.8 million tons annually. This decision aligns with the government’s efforts to boost the country’s fuel and energy complex and expand export destinations.