MINEX Forum

Tag: Coal

  • Uzbekistan aims for 22% increase in coal production

    Uzbekistan aims for 22% increase in coal production

    Uzbekistan is gearing up to boost coal production by 22%, as reported by the press service of the head of state. On January 15, President Shavkat Mirziyoyev conducted a thorough review of a presentation outlining achievements in the field of geology and laying out plans. A substantial annual allocation of UZS 1 trillion (approximately $80.5 mn) has fueled geologic initiatives, resulting in the exploration of 31 thousand square kilometres of new sites.

    The industry is presently witnessing the implementation of ambitious investment projects, totalling an impressive $1.7bn. Despite these strides, untapped opportunities abound in the sector to expand fields and enhance their scale of development. In response, the president has issued a directive to attract foreign technologies and investments in geological exploration, aiming to bolster efficiency and production.

    President Mirziyoyev also addressed the crucial matter of processing enrichment waste based on best practices, recognizing the importance of sustainable resource utilization.

    Minister of Mining and Geology, Bobir Islamov, shared insights in an interview with Uzbekistan 24, highlighting the president’s order for the development of a strategic mineral resource base with the engagement of international experts. The identification of “unconventional” deposits is a key aspect of this initiative.

    Additionally, the president has instructed to facilitate entrepreneurs with access to “high-quality and cheap” kaolin (white clay), emphasizing the importance of supporting local businesses in the sector.

    Minister Islamov announced the formulation of a new law on subsoil, with the involvement of international consultants from the Boston Consulting Group.

    According to data from the Statistics Agency, Uzbekistan witnessed the production of 5.73 mn tons of coal in January-November last year, marking a substantial 19.1% increase compared to 2022.

    Earlier reports from Daryo indicated that Kazakhstan has nearly doubled its coal supplies to Uzbekistan, reflecting a regional dynamic in the coal industry.

  • A regular meeting of the Coordination Council on coal exchange trading was held

    A regular meeting of the Coordination Council on coal exchange trading was held

    A meeting of the Coordination Council was held at the site of the Ministry of Trade and Integration of the Republic of Kazakhstan.

    During the meeting, business games were held at 3 commodity exchanges (JSC Caspian Commodity Exchange, JSC Commodity Exchange Eurasian Trading System, JSC Commodity Exchange Modern Trading Solutions).

    Business games simulated trading in municipal coal from six sellers (Karazhyra JSC, Maikuben-West LLP, Razrez Kuznetsky LLP, Mining Company SatKomir JSC, Shubarkol Komir JSC and Shubarkol Premium JSC ).

    Regional operators participated in business games on a regional basis, depending on regional needs.

    The meeting was attended by representatives of local executive bodies, government agencies and private businesses (regional operators and coal companies and commodity exchanges).

    Based on the results of the Coordination Council, recommendations were made on establishing the maximum amounts of membership fees and the exchange commission, approving trading instruments for municipal coal for each region, forming the annual coal demand for 2024 broken down by month, etc.

    Let us recall that by Order of the Ministry of Trade and Integration of the Republic of Kazakhstan dated December 6, 2023 No. 420-НК, changes were made to the Rules of exchange trading in the coal section regarding the sale of coal only to regional operators included in the information of the Ministry of Industry and Construction, in the context of each region in order to ensure uniform meet regional needs.

    The rules come into force on December 22, 2023.

    To ensure transparency of pricing in the coal market in order to prevent sharp price increases, sellers will ensure the sale of municipal coal through the commodity exchange in the following order:

    50% of the volume is sold at spot trading;

    50% of the volume is sold subject to monthly payment and delivery for a period of 6 to 12 months.

  • Kazakhstan intends to export coal to Indonesia

    Kazakhstan intends to export coal to Indonesia

    The third round of negotiations on concluding a free trade agreement between member states of the Eurasian Economic Union and Indonesia ended in the city of Denpasar (Republic of Indonesia),reported at the Ministry of Trade and Integration of Kazakhstan.

    According to MIT, bilateral trade between Kazakhstan and Indonesia is actively developing, and trade turnover for 10 months of this year amounted to 249 million US dollars, of which Kazakhstan’s exports to Indonesia account for 95.2 million US dollars.

    Currently, we are seeing the emergence of new export items, such as coal, which were not previously supplied from Kazakhstan to Indonesia. In addition, traditionally the main items of Kazakhstan’s exports are ferrochrome, equipment for working with soil, transmission shafts, as well as other instruments and equipment,” said the press service of the Ministry of Trade.

    As part of the third round of negotiations, the parties discussed the provisions of the text of the future agreement, and also continued further work on discussing tariff liberalization with the aim of mutually reducing import customs duties.

    We have managed to make significant progress on all key issues of the future agreement. We are confident that this agreement will ensure a significant increase in mutual trade turnover between our countries, and will also create additional favorable conditions for domestic exporters,” said the MTI, whose experts took part in the negotiations.

    On May 25, President of Kazakhstan Kassym-Jomart Tokayev, during a speech at a meeting of the Supreme Eurasian Economic Councilnoted that it is important to continue a systematic dialogue with integration associations and countries with which cooperation is of economic interest to us.

    The Commission will have to quickly complete work on concluding agreements on a free trade zone with the United Arab Emirates, India, Egypt, Indonesia, and Israel. We should qualitatively strengthen interaction with the SCO, ASEAN, MERCOSUR and other international organizations. I think the interest in cooperation on the part of these organizations is mutual,” said Kassym-Jomart Tokayev.

    Recall that negotiations between the EAEU and Indonesia on concluding a free trade agreementbegan in May 2022.

     

  • Coal mining companies face difficulties when exporting products

    Coal mining companies face difficulties when exporting products

    At the AGMP site, a meeting was held on problematic issues of the coal industry, chaired by the advisor to the executive director of the association, Tulegen Mukhanov.

    At the meeting with the participation of representatives of coal mining companies, issues of supplying municipal coal to the domestic market, selling coal for export, and implementing proposals within the framework of the resolution of the IV Coal Industry Forum were discussed.

    According to operational information from coal mining companies, the domestic market is currently supplied with municipal coal. The current situation regarding the supply of solid fuel to the population is under constant control of the Ministry of Industry and Construction, NPP Atameken, and AGMP.

    Issues of loading coal for export are also discussed weekly at meetings of the operational headquarters established at the Atameken National Chamber of Entrepreneurs with the participation of the Ministries of Transport, Trade and Integration. AGMP takes an active part in the meetings.

    At the meeting, specialists from coal mining companies drew attention to such difficulties in supplying products to non-CIS countries, such as a shortage of cars, non-coordination of transportation plans by KTZ, Russian Railways, and the introduction of conventional bans. Meanwhile, untimely delivery of coal to foreign buyers entails the accrual of significant fines, as a result of which the financial burden on coal mining enterprises will increase. Moreover, export contracts are concluded on strict conditions of continuity of supply. The lack of supply guarantees will certainly affect the choice of coal buyers, which may lead to loss of sales markets and will affect a decrease in coal production volumes.

    According to Ilyas Mazhitov, director of the department of coal industry and energy of ASMP, earlier ASMP sent a letter about problems with coal exports to the Ministries of Transport, Trade and Integration, KTZ. It is planned to contact government agencies with a similar letter in the near future.

    Following the results of the IV Coal Industry Forum, its participants adopted a resolution. The first paragraph of the resolution stipulates that AGMP and NCE RK “Atameken”, together with the Ministry of Industry and Construction, will develop a long-term Program for the Development of the Coal Industry of Kazakhstan in order to formulate a predictable state policy regarding the industry, including encouraging the development of new deposits. AGMP together with the Ministry of Railways have begun to implement this issue. Thus, a Working Group is being created under the Industry Committee of the Ministry of Railways.

    “The program for the development of the coal industry will be a historical document, which will be developed for the first time in our country, so we encourage coal mining enterprises to actively participate in its preparation,” T.M. Mukhanov emphasized.

    Coal mining companies also addressed specific issues to the AGMP to facilitate their resolution.

  • DTEK contracts another 70,000 tons of coal imports from Poland

    DTEK contracts another 70,000 tons of coal imports from Poland

    Ukraine’s private energy giant DTEK has contracted an additional 70,000 metric tons of coal from Poland as it prepares for a second winter of Russian attacks on the country’s energy system, the company said in a statement on Nov. 13.

    DTEK has contracted a total of 280,000 metric tons of coal from Poland since September, and has already imported and delivered 78,000 metric tons to its thermal power plants, the company said.

    Last month, the company said it had planned to import 210,000 metric tons of coal to ensure the stable operation of its thermal plants this winter.

    “Our own coal mining always remains a priority for us, but additional shipments of fuel from abroad will allow us to go through the heating season more confidently. We are doing everything to get through this difficult winter and provide Ukrainians with light and warmth,” said General Director of DTEK Energy Ildar Saleev.

    Russia has consistently targeted Ukraine’s energy infrastructure since the start of the full-scale invasion, including sites operated by DTEK.

    The company is actively repairing and restoring power units, extracting coal at maximum capacity as well as reinforcing thermal power plants and coal mines with alternative power sources, Saleev said.

    He also said the company has a reserve of critical equipment to counter the impact of future strikes.

    The military on Nov. 6 warned that Russia is “waiting for the temperature to drop below zero” before launching mass strikes on Ukraine’s energy system.

  • Coal: UK’s last opencast mine shuts after legal row

    Coal: UK’s last opencast mine shuts after legal row

    Documents seen by BBC News show concerns at the Welsh government and UK Coal Authority that Merthyr Tydfil’s Ffos-y-Fran mine may be abandoned.

    Estimated clean-up costs for the site – the size of 400 football pitches – have grown to between £120m and £175m.

    Site operator Merthyr (South Wales) Ltd said it was in “constructive dialogue” with Merthyr Tydfil council.

    Union Unite, which represents 115 workers being made redundant as coal mining stops, said it understood the company was “committed” to restoring the site in future and would not walk away.

    Welsh mountain pony breeder Roy Thomas, 80, who lives metres from the mine’s boundary, called it “a total blight” on his life for the past 16 years and described the mine as a “neighbour from hell”.

    The Welsh government allowed the controversial project to happen close to homes and businesses because it is a “land reclamation scheme” that requires the operator to return it to green hillside, with most of that work due to happen after mining had stopped.

    Today a giant pit – which is about 656ft (200m) deep – remains.

    Mr Thomas described the scene as “absolutely disgusting”, adding that the mounds of spoil material should go back in the hole as there is “millions of tonnes of material in there”.

    Ffos-y-Fran has produced nearly 11.25m tonnes of coal since opening in 2008, and is responsible for 86% of the UK’s total coal output.

    Since September 2022, its owners have been digging without planning permission – an application for more time was refused and the firm appealed an enforcement notice before announcing a closure date of 30 November.

    Negotiations between the firm and the council continue over what happens next.

    The company has admitted “insufficient funds” had been set aside to carry out the agreed restoration work.

    In a letter released under the Freedom of Information Act to campaign group Coal Action Network and shared with BBC News, the UK Coal Authority’s chief executive criticised the council’s approach.

    Writing to the Welsh government on 20 October, Lisa Pinney said there had been “very little visible progress” in preparing for the mine’s closure and “no agreed revised restoration plan or emergency response plan in place if the site should be abandoned”.

    How to manage rising water levels is one issue yet to be resolved, with Ms Pinney writing that, without a clear plan, “there is a clear risk to public safety and to the environment”.

     

  • In Kazakhstan, a number of companies have been given the exclusive right to export certain types of coal

    In Kazakhstan, a number of companies have been given the exclusive right to export certain types of coal

    The Government of Kazakhstan adopted a resolution dated November 17, 2023 “On some issues of granting the exclusive right to export certain types of coal,” Zakon.kz reports.

    The list of individual types of coal that can be exported includes:

    • hard coal; briquettes, pellets and similar types of solid fuels obtained from coal;
    • lignite or brown coal, whether or not agglomerated, other than jet.

    The list of participants in foreign trade activities that have been granted the exclusive right to export certain types of coal includes 33 companies, including:

    • JSC “Mining Company “SatKomir” (SatKomir).
    • JSC ArcelorMittal Temirtau.
    • Branch of JSC “Eurasian Energy Corporation” – “Open Mine “Vostochny”.
    • JSC “Karazhyra”
    • JSC “Maikuben-West”
    • JSC “Shubarkol Komir” and “Shubarkol Premium”.
    • Kazakhmys Coal LLP (Kazakhmys Coal).
    • “Sherubai Komir” LLP.
    • LLP “Trade and industrial company “BAS”.
    • LLP “Bogatyr Komir” 

    The Rules for the suspension or termination of an exclusive license for the export of certain types of coal have also been approved.

    Thus, the licensor may suspend the exclusive license in the following cases:

    • voluntary application of the licensee;
    • suspension of one or more documents on the basis of which the exclusive license was issued;
    • failure by licensees to submit quarterly, before the fifteenth day of the month following the reporting quarter, a report on the progress of execution of the exclusive license to the licensor;
    • indications by licensees of false information in quarterly reports on the progress of execution of the exclusive license;
    • presence of a judicial act. 

    The resolution will come into force on December 1, 2023.

    Earlier it was reported that Kazakhstan extended the ban on the export of certain types of coal from November 21, 2023 for a period of six months.

  • Kyrgyzstan’s black coal import from Kazakhstan drops

    Kyrgyzstan’s black coal import from Kazakhstan drops

    BISHKEK, Kyrgyzstan, November 13. Kyrgyzstan imported 303,292 tons of black coal from Kazakhstan from January through August 2023, Trend reports.

    Data from the National Statistical Committee shows that the figure was 1.4 percent less than in the same period of 2022 (307,672 tons). The value of the imports amounted to $12.858 million, reflecting an 18 percent decline compared to the same period in 2022 ($15.622 million).

    The majority of coal in Kyrgyzstan was primarily imported from Kazakhstan, with an additional 11 tons from Russia, costing $600.

    Meanwhile, the volume of imports from Russia decreased by 95.9 percent compared to 275.4 tons imported from January through August 2022, and the value decreased by 99.2 percent compared to $76,000 recorded in the eight months of 2022.

    At the same time, a total of 801,013 tons of black coal were exported from Kyrgyzstan from January through August 2023, which is 71.8 percent more than in the same period of 2022 (466,207 tons)

    Kyrgyzstan’s imports from Kazakhstan totaled $546.152 million in the first eight months of the current year, which is a 12-percent decrease year-on-year.

  • Death toll rises to 45 in ArcelorMittal Kazakh coal mine fire

    Death toll rises to 45 in ArcelorMittal Kazakh coal mine fire

    The death toll from a fire at a coal mine in Kazakhstan owned by ArcelorMittal rose to 45 on Sunday, with emergency teams engaged in an operation to find one remaining miner believed to have been underground, emergency service officials were quoted as saying.

    On Saturday, operator ArcelorMittal Temirtau, the local unit of Luxembourg-based steelmaker ArcelorMittal, said 206 of 252 people at the Kostenko mine had been evacuated after what appeared to be a methane blast.

  • Coal Stockpiles Accumulate for “Shubarkol Komyr”

    Coal Stockpiles Accumulate for “Shubarkol Komyr”

    Regrettably, the actual shipment facilitated by the esteemed operator “Kazakhstan Temir Zholy” (KTZ) network accounted for a mere 53.7% of the planned volume, as reported by the reputable “Kursiv” magazine.

    The astute management of the coal company has astutely observed that KTZ has failed to uphold its agreements with the producer. Specifically, KTZ has underestimated the provision of wagons for transporting raw materials abroad and has consistently imposed arbitrary restrictions on the railway transportation of coal.

    Initially, “Shubarkol Komyr” had set forth plans to export 1,929.2 thousand tons of coal, with the railway operator agreeing to transport 1,590.6 thousand tons. However, over the course of eight months, a mere 1,032.8 thousand tons of solid fuel were successfully dispatched for sale. Notably, Poland emerged as the primary importer of coal, with deliveries in this direction experiencing an astonishing increase of 7.95 times, amounting to 1,021.6 thousand tons.

    As a consequence of the disruptions in raw material exports, the company was compelled to curtail its coal production. During the aforementioned eight-month period, “Shubarkol Komyr” was able to yield 1,075 thousand tons of coal, a mere half in comparison to the corresponding period in 2022. For the current year, the company’s targeted production stands at 2 million tons of fuel, representing a significant 33% decrease year-on-year.

    In order to circumvent penalties arising from non-compliance with licensing and contractual obligations pertaining to mineral extraction, the diligent producer has already approached the Ministry of Industry and Infrastructure Development. They have dutifully presented evidence confirming that the railway operator has provided fewer wagons for the transportation of raw materials than is required by the coal company.