MINEX Forum

Tag: Coal

  • Ukraine Must Ensure Stable Tax and Tariff Policies to Attract Foreign Investment, Urges Metinvest

    Ukraine Must Ensure Stable Tax and Tariff Policies to Attract Foreign Investment, Urges Metinvest

    Without a predictable tax and tariff policy, it is impossible to attract foreign investment to Ukraine. This opinion was expressed by Oleksandr Vodoviz, Head of the Office of the CEO of Metinvest Group, at the conference “Strategic Resources of Ukraine: Development Scenarios for the Subsoil Use Industry”.

    Vodoviz emphasized that the mining and processing business is capital-intensive and requires significant initial investments. Stability and predictability of government policy are crucial for attracting large international players. For instance, developing a mine similar to the one in Pokrovsk would require around US$10 billion.

    Projects in the mining industry have a long payback period, taking an average of 18 years to go from obtaining a license to launching an enrichment facility. Currently, there are some projects at the feasibility stage, but none are ready.

    Ukrainian businesses are mostly investing independently in the development and maintenance of enterprises and the mining industry. They invest an average of US$1 billion annually.

    Vodoviz highlighted the challenges of operating businesses during the ongoing war and the need for the government to consider this factor when integrating European legislation. The process of rapprochement with the EU will involve 550 regulations in the extractive industry and will take 4-5 years.

    In January 2025, Metinvest announced the temporary suspension of Pokrovske Coal Group’s operations due to the security situation on the frontline and electricity shortages. The company is replacing Ukrainian coal with supplies from the United States.

  • Shubarkol Komir Coke Plant Hits Target Capacity

    Shubarkol Komir Coke Plant Hits Target Capacity

    The special coke plant at Shubarkol Komir, a subsidiary of Eurasian Resources Group (ERG), has concluded the year with record-breaking performance. The plant has reached its full production capacity, producing 478,000 tonnes, significantly exceeding the planned targets.

    The special coke produced at the plant will substantially reduce Kazakhstan’s dependence on imported reducing agents and increase the local content in the ferrochrome produced by ERG.

    This success highlights the importance of implementing innovative technologies and developing the production base to strengthen Kazakhstan’s position in the global market. The special coke plant not only enhances the company’s industrial potential but also makes a significant contribution to the country’s economy by creating new jobs and reducing external economic risks.

    The successful launch and achievement of full production capacity mark another step towards diversifying Kazakhstan’s economy and realizing ambitious goals in carbon resource processing.

    — “Diversification projects play a crucial role in our development. Processed products such as oil, activated carbon, technical carbon, methanol, and carbonates are in high demand. In the future, we plan to expand this product line. We aim for a complete cycle of coal processing: from coal to coke, from coke to gas, and from gas to electricity. The gas can be used to produce methanol, and the coke can be processed into activated carbon, which is then used as a sorbent. This is a step towards zero-waste production,” noted the general director of the enterprise.

    Shubarkol Komir is one of the largest producers of energy coal and special coke in Kazakhstan, playing a key role in the domestic industry by combining significant production volumes with unique quality characteristics.

    In 2023, a special coke plant was built on the company’s premises, with investments totaling 60 billion tenge. Currently, the plant employs over 180 staff members and is equipped with modern technological solutions and automated control systems.

    By August 2024, the new plant had reached its full production capacity, achieving record figures in some months compared to the project plans. Including the commissioning and adjustment works, the coke production volumes for 2024 amounted to 268,900 tonnes, exceeding the planned targets.

    Shubarkol Komir is actively implementing innovative processes based on coal chemistry, producing special coke, activated carbon, coal tar, and coal oil, as well as liquid humic fertilizers. In addition to the main products, the plant plans to produce coal tar and coal oil at a volume of 72,000 tonnes per year, using coal from the Shubarkol mine as raw material.

  • Belchatow Faces Uncertain Future as Europe’s Largest Coal Plant Prepares to Close

    Belchatow Faces Uncertain Future as Europe’s Largest Coal Plant Prepares to Close

    In Belchatow, Poland, the PGE coal-fired power plant, Europe’s largest and one of the world’s top polluters, has powered local industries and provided 20% of Poland’s electricity for decades. With EU-driven goals pushing its closure by 2036, the city of 55,000 braces for significant economic shifts. Efforts to retrain workers for “green collar” jobs and build renewable energy projects are underway, though residents worry about a lack of clarity on future job prospects. The transition’s impact is already visible: youth are increasingly leaving Belchatow, and a new wave of political support has emerged for Patryk Marjan, the city’s first far-right mayor, who campaigned against the EU’s Green Deal. Locals express concern over the region’s future, and some fear the city could lose its vitality and identity post-coal, with some joking it could become “churches and kebab shops.” The question remains whether Belchatow can secure an economically sustainable future in the clean energy era.

  • Qarmet to Invest $1.48 Billion in Iron Ore and Coal Projects by 2025

    Qarmet to Invest $1.48 Billion in Iron Ore and Coal Projects by 2025

    Over the next few years, the company plans to invest $1.48 billion in its iron ore and coal departments. Of this amount, $500 million will be allocated to the development of the iron ore division, and $978 million to the coal division. This was announced following President Kassym-Jomart Tokayev‘s visit to the metallurgical plant.

    The official website of the President of the Republic reported that the plant’s management had already implemented several production upgrades and shared future plans. Since the plant was transferred to a new investor, a series of major projects worth over $3.5 billion have been initiated.

    The 2024 plant renovation program includes more than a hundred facilities and the replacement of 50,000 square meters of roofing. Additionally, sanitary and household facilities will be repaired.

    Kassym-Jomart Tokayev was shown the operation of Converter Shop No. 2 and the Continuous Casting Machines. Qarmet intends to further modernize the control systems and hydraulics in this section.

    The company has launched a “5-9-5” program: 5 million tons of steel, 9 million tons of coal, and 5 million tons of iron ore concentrate annually. As a result, by 2025, the metallurgical plant’s capacity will increase by 66% compared to last year.

    In 2023, coal mining was carried out at only three mines; now, Qarmet operates eight mines in Kazakhstan. Next year, all facilities will be equipped with positioning systems.

    President Tokayev summarized that the authorities made the “right decision” by inviting a Kazakh investor to manage the company. He instructed to “restore the former glory” of the metallurgical plant.

  • Polish Mining Industry Faces Challenges, Ministry Official Warns

    Polish Mining Industry Faces Challenges, Ministry Official Warns

    During the European Economical Congress in Katowice, Marta Jamo, the director of the Ministry of Industry’s analytics department, highlighted the critical state of Poland’s mining sector. Despite turning a profit last year, the industry struggles to convert it into tangible assets, she stated. Jamo pointed out the persistent issue of high coal piles, stemming from past practices of unregulated imports and a lack of understanding of market and energy industry demands. Emphasizing the urgency, she stressed the need to address the social contract.

  • Coal Production Decline in Kazakhstan’s Deposits in February 2024

    Coal Production Decline in Kazakhstan’s Deposits in February 2024

    According to data from the second month of 2024, coal production in Kazakhstan’s deposits decreased to 9.083 million tons, marking a 9.6% decline compared to February of the previous year. While various types of coal are mined in the country, coal accounts for the majority. The beginning of the year has seen a decrease in coal production of this type by 11.3%.

  • Kazakhstan Implements Measures to Develop Coal Exchange Trading

    Kazakhstan Implements Measures to Develop Coal Exchange Trading

    According to the announcement by the Agency for Protection and Development of Competition of the Republic of Kazakhstan, a comprehensive set of measures aimed at developing coal exchange trading in the country will be implemented in 2024. These measures include tightening requirements for exchanges and expanding access to trading.

    Until 2022, major producers of municipal coal, such as “Karazhyra” and “Shubarkol Komir,” sold it through unproductive intermediaries, accounting for up to 97% of sales volume. The subsequent resale of coal to end retail sellers with an average markup of 40-45% also became problematic.

    To overcome these intermediary schemes and ensure direct access to coal producers, a requirement was introduced in 2021 to sell a portion of the coal at exchange auctions directly to end consumers. The share of this is planned to be increased to 80%.

    In addition, the Agency intends to conduct an analysis of competition in the wholesale coal market to regulate coal sales outside exchanges and prioritize deliveries to qualified suppliers.

  • The new government of the Republic of Kazakhstan sets tasks for the development of high value-added production

    The new government of the Republic of Kazakhstan sets tasks for the development of high value-added production

    Large Kazakh industrial enterprises will need to develop roadmaps for establishing new high-value production facilities. The new Prime Minister of the Republic of Kazakhstan, Olzhas Bektenov, issued this instruction during an extended government meeting.

    According to the press service of the Cabinet of Ministers, in the near future, First Deputy Prime Minister Roman Sklyar will conduct negotiations with the heads of significant production facilities in the republic. Primarily, mining companies will be confronted with the challenge of producing high-value-added products.

    This directive aligns with the message of the head of state, “Economic Course of a Fair Kazakhstan.” Last fall, the president emphasized that the country should establish distinct industrial clusters. Kassym-Jomart Tokayev proposed giving priority to the deep processing of metals, coal, oil and gas chemistry, uranium conversion and enrichment, heavy engineering, and so on.

    Another directive from the Prime Minister concerns the utilization of domestic raw materials in the manufacturing industry. According to Mr Bektenov, industrial giants must significantly increase the procurement of domestic goods, services, and works.

    In 2024, the manufacturing industry of the Republic of Kazakhstan intends to implement a total of 180 investment projects worth 1.5 trillion tenge.

  • Ukraine: Krasnolimanske buys license for coal deposit in Donetsk region

    Ukraine: Krasnolimanske buys license for coal deposit in Donetsk region

    Krasnolimanske LLC has become the winner of the auction to sell a special license to use subsoil – the mine site No. 1 in Mirnograd, Donetsk region.  The auction was held on February 8 on Prozorro.  Three companies participated in the trade of the lot with the starting price of 2.22 million UAH. The bid of Krasnolimanske in the amount of 4 million UAH won.  The license is valid for 20 years.

  • The Mazhilis of the Republic of Kazakhstan is concerned about the rise in price of coal on the domestic market

    The Mazhilis of the Republic of Kazakhstan is concerned about the rise in price of coal on the domestic market

    Fuel prices on the domestic market of Kazakhstan are constantly rising during the heating seasons, including due to intermediary companies. A parliamentary request related to the rise in coal prices was voiced by deputy Sergei Ponomarev during a plenary meeting of the Majilis. The portal Informburo.kz writes about this .

    According to Mr. Ponomarev, intermediaries significantly increase the final cost of fuel. As an example, he cited coal prices in the Shet region – 25 thousand tenge per 1 ton, while directly at the exit from the Shubarkol deposit, raw materials cost almost three times less – 8.5 thousand tenge per 1 ton.

    Majilismen want the Agency of the Republic of Kazakhstan for the Protection of Consumer Rights to get involved in solving the problem. The department needs to identify unscrupulous intermediary companies and achieve a reduction in prices for coal, which residents of the republic buy at retail.

    In addition, in their request, the deputies noted another controversial point in the development of the industry. As Mr. Ponomarev emphasized, some companies mining coal “give nothing to the state in return,” which is prohibited by the republican subsoil code.

    For example, the Majilisman is dissatisfied with the activities of the Aktas Komir enterprise, which has not yet built a special coke production facility in the Karaganda region, although it is increasing its coal production every year.

    The deputies also propose that the Supreme Audit Chamber of Kazakhstan conduct an assessment of the effectiveness of the industrial and innovative development program and identify which industry companies use public funds irrationally.