Kazakh Coal Producers Look For New Markets

Kazakh Coal Producers Look For New Markets

Kazakh coal producers are interested to enter new markets in Europe and Asia after the reduction in coal export to Russia, Kazakh LS business website reported with the reference to Executive Director of the Republican Association of Mining and Metallurgical Enterprises Nikolai Radostovets.

Russia is set to replace Kazakh coal imports to its own coal, within the program of industry development until 2030.

Kazakh coal companies want to sign long-term export contracts, Radostovets said at the governmental meeting Jan. 24.

He also noted that Russia is going to increase the fee for transit carriers. This increase will affect Kazakh coal exporters among others. Radostovets asked Kazakh Prime Minister Bakytzhan Sagintayev to support local companies in this issue within the forthcoming negotiations with Russia.

Head of the Republican Association of Mining and Metallurgical Enterprises also stressed that Kazakhstan requires new coal strategy and new rules of cargo transportation.

He also noted that coal producers in Kazakhstan experience rail car shortage – in late 2016 they were provided with 70 percent of required cars and proposed to create a special working group under the Ministry of Investment and Development, which would optimize the process of car provision.

Kazakhstan produced 98 million tons of coal in 2016. As much as 71.8 million tons of this volume was supplied to domestic market, 26.2 million tons sent to export. In 2017 Kazakhstan plans to produce 100 million tons.

Share