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World 08/10/2020 The downward trend in coal exports from Kazakhstan to continue
The downward trend in coal exports from Kazakhstan to continue

Tashkent, Uzbekistan (UzDaily.com) -- According to official data, out of 69 million tonnes of coal mined in Kazakhstan for 8 months. this year, about 18.5 million tonnes were exported. About 86% of coal exports go to Russia.

Experts draw attention to the following factors affecting the export of Kazakh coal.

First. Decrease in demand for coal in foreign markets. The focus on "green technologies" and the tightening of environmental regulations in the EU countries have led to a decrease in the export of Kazakh coal. In January-April of this year, 9 thousand tonnes were supplied to Switzerland, Cyprus and Finland, which is 83 times less than in 2019 (750 thousand tonnes) and 155 times - 2018 (1.4 million tonnes). Deliveries to Poland decreased by 45%. In turn, Russia is switching the energy systems of its regions to Kuzbass coal (annual production capacity of 250 million tonnes).

Second. Transit connection to Russia. Since June 2019, when transporting coal in the direction of Ukraine, a “permissive” regime has been applied to Kazakh coal. In 2019, the Ministry of Economic Development of Russia agreed with Kazakh coal mining companies to supply to Ukraine only 320 thousand out of 775,000 tonnes of coal (41%). Monthly losses from Moscow’s “obstacles” to coal transit are equal to US$11 million.

Third. Peculiarities of geographical location and high railway tariffs. Railways are the most efficient way of transporting coal due to the geographic features of Kazakhstan (the remoteness of the main export markets). However, transit through Russia is limited by the capacity of Russian railways and Far Eastern ports. At the same time, sea supplies of coal to China from Australia and Indonesia make the export of Kazakh coal to China unprofitable.

In general, against the background of the development of the "green economy" in the main importing countries of Kazakhstani coal, the downward trend in the export of this resource from Kazakhstan will continue.

At the same time, in order to maintain demand for its coal abroad, Nur-Sultan will be forced to invest additional funds in the modernization of the coal industry in order to increase its competitiveness.

 

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