MINEX Forum

Tag: energy policy

  • Türkiye Frames Energy Crises as Opportunity Under “New Energy Architecture” Strategy

    Türkiye Frames Energy Crises as Opportunity Under “New Energy Architecture” Strategy

    Türkiye is navigating successive global energy crises through a coordinated mix of policy planning, infrastructure investment, and strategic resource development, according to Energy and Natural Resources Minister Alparslan Bayraktar.

    In an article published in Turkish daily Sabah ahead of the second Istanbul Natural Resources Summit (INRES 2026), Bayraktar said the country has managed to transform recent geopolitical and market disruptions into opportunities under what he described as a long-term “new energy architecture.”

    He pointed to the last six years as a period defined by overlapping global energy shocks, including conflict-driven disruptions in key regions, arguing that Türkiye has been able to maintain stability through strong leadership, established infrastructure, and coordinated policy execution.

    Bayraktar highlighted milestones in Türkiye’s National Energy and Mining Policy, including the major 2020 natural gas discovery in the Black Sea region and subsequent development efforts that now supply domestic gas to millions of households. He also referenced oil production expansion in Şırnak’s Gabar region, where output has reached tens of thousands of barrels per day.

    The minister said Türkiye’s broader strategy is built on a “crisis-opportunity” framework, combining domestic resource development with international exploration efforts. These include ongoing drilling activities in Somalia and planned operations in Pakistan and Libya, alongside unconventional oil exploration projects within Türkiye.

    A key pillar of the strategy is the expansion of critical mineral production, particularly boron and rare earth elements. Bayraktar said Türkiye aims to strengthen its position as a global leader in boron exports while advancing refining capabilities in rare earths, with the goal of increasing value-added production and reducing reliance on raw material exports.

    He also outlined plans to diversify energy supply routes, strengthen infrastructure resilience, and expand international partnerships across natural gas, oil, and mining sectors. Electrification was described as a central element of Türkiye’s evolving energy system, intended to create a more flexible and integrated market structure.

    Bayraktar emphasized that the INRES 2026 summit will serve as a platform for international cooperation in energy diplomacy, bringing together officials and stakeholders from Europe, Asia, and Africa. The event is expected to focus on energy security, investment, and financing strategies amid ongoing geopolitical tensions.

    Türkiye continues to position itself as a regional energy hub through expanded infrastructure, cross-border cooperation, and increased domestic production across hydrocarbons and strategic minerals.

  • Poland Weighs New Mining Pact to Balance Coal Profitability and Energy Transition

    Poland Weighs New Mining Pact to Balance Coal Profitability and Energy Transition

    Poland’s government is preparing new policy measures for the coal mining sector as it seeks to balance economic viability with the country’s ongoing energy transition, according to Deputy Minister of State Assets Grzegorz Wrona.

    In an interview with PAP Biznes, Wrona said the Ministry of State Assets and the Ministry of Energy are working on a draft “social agreement” aimed at defining a broader pact between society and the mining industry, rather than a traditional agreement between employers and trade unions.

    The initiative is intended to ensure that coal mining operations remain profitable and sustainable while continuing to support Poland’s electricity generation and industrial development. Wrona emphasised that coal still plays a key role in the country’s energy mix, even as Poland faces growing pressure to meet European climate and regulatory requirements.

    Government officials are examining options that could improve the profitability of the sector, including initiatives focused on coal processing and value-added uses of the resource. According to Wrona, such approaches could allow the industry to remain economically viable without driving up electricity prices.

    The deputy minister acknowledged the complexity of managing the transition, noting that Poland must simultaneously address decarbonisation goals and maintain energy security.

    Industry representatives have also raised concerns about current support mechanisms. Bogdanka CEO Zbigniew Stopa recently stated that some domestically produced thermal coal is being sold below extraction cost due to subsidy programmes, placing companies that do not receive state support at a competitive disadvantage.

    Wrona echoed criticism of the subsidy system, arguing that policies should prioritise mining operations that are economically viable, safe and capable of meeting market demand. He highlighted Bogdanka, along with certain mines in Lesser Poland and Silesia, as examples of operations with strong long-term potential.

    Under Poland’s existing legislation governing hard coal mining, certain companies receive state subsidies to reduce production capacity as part of restructuring efforts. These include major mining groups PGG and PKW, as well as Weglokoks Kraj, whose last mine ceased production at the end of 2025.

    The government’s ongoing policy discussions aim to identify a sustainable framework for the sector while addressing concerns about economic competitiveness, employment and regional development in mining areas.

  • Kazakhstan Coal Output Declines in January Amid Long-Term Power Expansion Plans

    Kazakhstan Coal Output Declines in January Amid Long-Term Power Expansion Plans

    Coal production in Kazakhstan declined in January 2026 despite the government’s long-term plans to expand coal-fired power generation capacity.

    According to official statistics, output of thermal coal reached 9.92 million tonnes in January, down 1.7% compared to the same period last year. Total coal production, including coking grades, amounted to 10.31 million tonnes, reflecting a year-on-year decrease of 0.7%.

    The modest start to the year comes as the government prepares a coal power development programme through 2030, which предусматривает the commissioning and modernisation of approximately 7.6 GW of thermal power capacity.

    In 2023–2024, Kazakhstan’s thermal power plants consumed around 55 million tonnes of coal annually. With the rollout of new energy projects, additional demand could rise by up to 16 million tonnes per year, requiring increased output and more stable supply chains.

    Bogaty r Komir, the country’s largest private coal producer, plans to raise production to 45.2 million tonnes in 2026 and further expand to 56.5 million tonnes by 2032. The company’s primary resource base is the Ekibastuz deposit, which holds estimated reserves of approximately 2.4 billion tonnes.

    For full-year 2025, Kazakhstan’s total coal production reached 115.9 million tonnes, marking an increase of around 6.5% compared with the previous year.

  • Romania Eyes Rare Earth Refining Capacity to Become Global Critical Materials Player

    Romania Eyes Rare Earth Refining Capacity to Become Global Critical Materials Player

    Romania could emerge as a global force in the rare metals industry as it moves to develop domestic refining capacity, Energy Minister Bogdan Ivan said in an interview with Antena 3.

    Ivan argued that Romania already possesses strong industrial foundations, including major automotive and industrial wiring manufacturers that currently import refined copper from countries such as India, China and Turkey, despite much of the raw ore being mined domestically. He said the establishment of a rare earths refinery would encourage high-tech manufacturers, including aerospace component producers, to relocate closer to Romanian industrial hubs such as Brasov, Sibiu and Feldioara.

    According to the minister, three Romanian projects involving critical raw materials were recognised by the European Union as strategically significant in April 2025. One of them is a €300 million investment to build the country’s first copper refinery in Hunedoara county. The project is being developed by a private Romanian company in partnership with state-owned copper miner CupruMin. Currently, copper ore extracted in Hunedoara is exported for refining in Turkey and Asia before being re-imported for use in domestic manufacturing.

    Two additional projects, worth a combined €315 million, focus on metallic magnesium extraction in Bihor county and battery-grade graphite extraction in Gorj county. The Bihor project involves companies from the United States and Canada, while the graphite project in Baia de Fier is operated by majority state-owned company Salrom.

    Ivan also confirmed ongoing discussions with a US-based mining company holding licences for rare earth deposits in Greenland. By mid-April, Romania expects to finalise the terms of what would become its first fully integrated project covering extraction, refining and downstream consumption of rare earth materials. The minister said the US company already holds contracts with major aerospace firms.

    In December, the Energy Ministry announced that the Feldioara Uranium Concentrate Processing Plant, a subsidiary of Nuclearelectrica, would establish a joint venture with US-based Critical Metals Corp. Under the plan, 50% of rare earths extracted from a major Greenland deposit would be processed at the Feldioara facility. The initiative could position Romania as a stable supplier of strategic materials for microprocessors, aerospace and defence industries.

    The project may receive financing under the European RESourceEU Action Plan, which has a budget of up to €3 billion.

  • Kazakhstan Drafts National Coal Power Project While Expanding Gas, Digital Energy Planning

    Kazakhstan Drafts National Coal Power Project While Expanding Gas, Digital Energy Planning

    Kazakhstan’s Ministry of Energy of Kazakhstan is preparing a National Project for the development of coal-fired power generation with a total potential capacity of around 7.6 GW, according to QazMonitor.

    Energy Minister Erlan Akkenzhenov said the initiative will prioritize modern “clean coal” technologies designed to meet environmental standards. As part of the programme, the ministry is overseeing the construction of three combined heat and power plants in Kokshetau, Semey and Ust-Kamenogorsk, with a combined capacity of 960 MW.

    The energy planning is being adjusted in the context of Kazakhstan declaring 2026 the Year of Digitalisation and Artificial Intelligence. Given the high electricity demand of data centres, the Energy Ministry and the Ministry of Digital Development, Innovations and Aerospace Industry will revisit timelines and volumes for new power capacity additions.

    Strengthening the gas sector
    To expand the country’s natural gas resource base, national gas company QazaqGaz is currently carrying out geological exploration across 14 licence areas, with preliminary resources estimated at about 515 billion cubic metres. In the medium term, the exploration portfolio is expected to grow to 30 sites, with total potential resources of roughly 1.7 trillion cubic metres.

    Around 50 subsurface blocks are planned to be offered via electronic auctions to attract investors and share geological risks. Exploration will be financed jointly by QazaqGaz, Samruk-Kazyna, and private investors.

    Digital map for hydropower development
    The ministry is also developing a unified digital map of Kazakhstan’s hydropower resources. The platform will integrate hydrological, topographical, infrastructure and legal data, helping to accelerate hydropower project design and shorten pre-investment preparation periods.

    Lower aviation fuel costs
    As part of efforts to develop aviation hubs, the price of jet fuel supplied directly to aircraft has been reduced from $1200 to $940 per tonne, with a further decrease to $890 planned. The ministry said the move has improved the competitiveness of Kazakhstan’s airports and supported the expansion of international routes, including services by Air Atlanta, Hungary Airlines and One Air.

  • Poland’s Silesia seeks a “just transition” as coal industry enters irreversible decline

    Poland’s Silesia seeks a “just transition” as coal industry enters irreversible decline

    Poland’s coal heartland of Silesia is confronting the end of an industry that has shaped its economy and identity for centuries, as regional authorities, economists and labor unions work to manage a gradual transition away from coal. The region remains the European Union’s largest coal-mining area, but mine closures are accelerating as climate targets tighten and alternative energy sources expand.

    At the center of the transition effort is a long-term plan designed to phase out coal while cushioning the social and economic impact on workers and communities. Developed over the past five years by economists, trade unions and government officials, the strategy sets 2049 as the final deadline for coal operations in Poland, significantly later than in many other EU states. The plan includes retraining programs, severance payments and early retirement options aimed at preventing mass unemployment and social collapse in mining towns.

    The stakes are particularly high in cities such as Bytom, where coal remains deeply embedded in the local economy and poverty and depopulation have intensified as mines close. By contrast, Katowice, the regional capital, has attracted new industries in manufacturing, technology and services, highlighting a widening economic divide within Silesia. Since 2005, the region has lost about 55,000 mining jobs, but gained roughly 160,000 positions in other sectors, underscoring the uneven nature of the transformation.

    Poland’s cautious approach reflects both historical experience and energy security concerns. Reliance on coal has long been seen as a buffer against dependence on foreign fuel supplies, particularly from Russia. However, rising electricity demand, EU emissions rules and the rapid growth of renewables, nuclear and alternative heating technologies are making the coal phaseout unavoidable.

    Regional planners argue that slowing the transition allows the broader economy to absorb displaced workers and generate new employment. Proposals under discussion include deeper integration of Silesia’s cities into a single metropolitan area to reduce inequality and attract investment, rather than allowing struggling towns to hollow out.

    While resistance remains among miners and local communities, many acknowledge that the debate has shifted from whether coal will end to how the region can exit the industry with the least social damage. Silesia’s transition is now being closely watched as a potential model for other coal-dependent regions in Central and Eastern Europe.

  • Poland Approves Bill to Support Coal Phaseout and Protect Mining Communities

    Poland Approves Bill to Support Coal Phaseout and Protect Mining Communities

    Poland’s government has approved a new bill to accelerate the country’s transition away from coal, aiming to make mine closures easier, provide financial support to affected workers, and promote the redevelopment of mining regions.

    “This is a specific response to the challenges of the energy transition and provides real support for thousands of miners,” said Energy Minister Miłosz Motyka. “We want the process of change to be carried out responsibly, with respect for local communities.”

    Under the proposed legislation, which still requires approval from parliament and President Karol Nawrocki, mining companies would be allowed to decommission mines independently with state financial assistance. They could also transfer decommissioned assets to local authorities or state entities to be repurposed for investment, revitalization, or infrastructure projects.

    The bill introduces a severance package of 170,000 zloty (€40,000) for miners losing their jobs, along with measures to ensure that state subsidies for reducing production are not misused to cover operational expenses.

    Minister Motyka described the initiative as paving “the way for a just transition in mining regions,” fostering investment, job creation, and economic renewal. The government maintains a parliamentary majority, but the bill could face a presidential veto — President Nawrocki, who previously called coal Poland’s “black gold,” has pledged to preserve domestic coal production.

    Poland remains Europe’s most coal-dependent country, with coal accounting for 57% of its electricity generation in 2024. The mining sector, however, is under growing economic strain: domestic coal extraction is among the most expensive in the world, and its high emissions increase costs under the EU Emissions Trading System (ETS).

    Recent data from Eurostat show that Polish households pay the third-highest electricity prices in the EU when adjusted for purchasing power. Meanwhile, state subsidies to the coal sector are expected to total 9 billion zloty this year and 5.5 billion zloty in 2026, highlighting the industry’s dependence on government support.

    According to the energy ministry’s impact assessment, the total cost of closing hard coal mines over the next decade will reach 11.3 billion zloty (€2.6 billion).

    Financial pressures are already mounting for major producers. Jastrzębska Spółka Węglowa (JSW), the EU’s largest coking coal producer, reported a 2 billion zloty loss in the first half of 2025 following a record 7.3 billion zloty loss in 2024, raising questions about its long-term viability and potential need for further state aid.

    Some state-owned utilities are also accelerating the shift away from coal. Last week, a subsidiary of PGE, Poland’s largest electricity provider, reached an agreement with trade unions to close one of its coal-fired power plants, offering a €59 million compensation package to affected workers.

  • Polish Coal Sector Faces Financial Strain Amid Energy Transition

    Polish Coal Sector Faces Financial Strain Amid Energy Transition

    Poland’s coal mining sector has reduced its losses since last year but still needs billions of złoty in state support to survive, according to Polish media.

    In the first half of 2025, the sector made a net loss of 4.059 billion złoty (€950 million), Industrial Development Agency data show, less than half of the 8.365 billion złoty (€1.97 billion) lost in the first six months of 2024. Over the whole of 2023, Polish coal mining turned a net profit of 4.8 billion złoty (€1.13 billion).

    Despite the improved performance, the industry needs shoring up from the state budget due to rising costs and falling output, one trade union leader told the wnp.pl business news site. Bogusław Ziętek, head of the Sierpień 80 miners’ union, said the high costs are a result of government policy.

    As part of its ‘green transition’ policy of diversifying energy production away from fossil fuels and toward renewables, the government has capped coal extraction. This year’s output is equal to that forecast for 2035, and this falling yield has pushed up the production price per ton, Ziętek said. Because of this, he argues, the government’s energy policy will cost the state billions.

    Polish online energy portal Wysokie Napięcie reports that the government has earmarked over 9 billion złoty (€2.12 billion) to support collieries in 2025, made up of 3.5 billion złoty (€820 million) in direct subsidies and up to a further 5.4 billion złoty (€1.27 billion) in loans.

    A ‘social agreement’ between the government and miners’ unions officially allocates around 29 billion złoty (€6.82 billion) for subsidies to unprofitable mining firms until 2031, though some sources have suggested the true cost may be as high as 42 billion złoty (€9.88 billion).

  • Germany’s New Economy and Energy Minister Calls for “Reality Check” in Energy Policy

    Germany’s New Economy and Energy Minister Calls for “Reality Check” in Energy Policy

    Katherina Reiche, the newly appointed German Economy and Energy Minister from the conservative Christian Democrat (CDU) party, has called for a “new agreement on the fundamentals” of the country’s energy strategy. In her inaugural address, Reiche emphasized the need for a freer energy market and greater innovation, with energy security as the top priority. “The blackout on the Iberian Peninsula showed how vulnerable an electricity system can be. We must prepare ourselves for minimizing risks of this kind,” she stated.

    While acknowledging the progress made in climate action through the expansion of wind and solar power, Reiche stressed that the associated systemic risks and costs had been underestimated. As part of a comprehensive “reality check” in energy policy, she argued for better alignment of renewable power expansion with grid infrastructure improvements.

    Reiche also underlined that renewable energy alone would not suffice to reliably power an industrialized nation like Germany. To bridge this gap, the government plans to expedite auctions for up to 20 gigawatts of new gas-fired power plant capacity and expand carbon management technologies (CCS/CCU). Further, she committed to fulfilling the coalition’s agreements, including a reformed approach to decarbonizing the heating sector with flexible CO2-reduction measures, the introduction of an industry power price, and the use of reserve power plants for price stabilization.

    In her address, Reiche praised her predecessor, Robert Habeck of the Green Party, for his efforts during the energy crisis spurred by Russia’s invasion of Ukraine, recognizing his resilience in facing political pressure while making critical decisions.

    Reiche concluded her speech with a call to tackle Germany’s economic challenges, acknowledging the impact of high taxes, energy costs, and bureaucratic hurdles on industrial competitiveness. While noting external pressures from Russia’s war and the US’s trade policies under Donald Trump, she pointed to Germany’s own structural issues as the primary obstacles. “The root cause of the country’s problems is ‘Made in Germany.’ But that also means the solution can be ‘Made in Germany,’” she affirmed. Reiche promised a policy approach focused on activation and market-driven solutions over regulation.

  • Polish Government Backs Rolls-Royce Plan to Build Nuclear Power Plants

    Polish Government Backs Rolls-Royce Plan to Build Nuclear Power Plants

    The Polish government has endorsed a proposal by Rolls-Royce to construct nuclear power plants in the country. Rolls-Royce SMR expressed its approval of the announcement by the Polish industrial group, Industria, which will facilitate the approval process for building Rolls-Royce Small Modular Reactor (SMR) power plants in Poland.

    In a statement, Rolls-Royce SMR highlighted that obtaining a Decision in Principle marks the initial step toward deployment. This decision requires input from several government departments. Recently, Polish Minister of Climate and Environment, Paulina Hennig-Kloska, provided the final necessary opinion, confirming that the investment would have a positive impact. This opinion followed endorsements from the Polish Minister of State Assets, the Chief of the Polish Internal Security Agency, and Poland’s Chief Geologist.

    With all required documentation now in place, the Polish Minister of Climate and Environment can issue a Decision in Principle to proceed with the deployment of Rolls-Royce SMRs in Poland. Minister Hennig-Kloska emphasized that this investment is in the public interest and aligns with Poland’s energy and climate policies, a sentiment echoed by other supporting government agencies.

    This decision enables Rolls-Royce to advance its commercial and technical discussions on deploying its SMR power plants in Poland. Each self-contained, factory-built unit is capable of providing low-carbon energy to a million homes for over 60 years.

    Alan Woods, Director of Strategy and Business Development at Rolls-Royce SMR, welcomed the government’s conclusion. He stated, “We are delighted the Polish Government has concluded that the deployment of our unique ‘factory-built’ nuclear power plants would have a positive impact for the country, and we look forward to a Decision in Principle to deploy Rolls-Royce SMRs in Poland.”

    Rolls-Royce SMR is also on track to complete Step 2 of the Generic Design Assessment by the UK nuclear industry’s independent regulators this summer, further solidifying its position as a leader in the European nuclear sector.