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Russia intends to abandon using Kazakh coal in future

Oil&Gas Materials 16 January 2014 18:14 (UTC +04:00)
Russia intends to gradually abandon using Kazakh coal,

Astana, Kazakhstan, Jan. 16

By Daniar Mukhtarov - Trend:

Russia intends to gradually abandon using Kazakh coal, Kazenergy Association CEO, Aset Magauov said on Jan. 16 at an enlarged meeting of the association's council meeting.

"The growth of Kazakh coal consumption in Russia is unlikely because of the projected growth in mining of its own coal and energy policies aimed at consecutive rejection of coal from Ekibastuz," he said.

Kazenergy CEO said that exports to Russia and Ukraine mainly include high-ash Ekibastuz coal. Import of Kazakh coal to the EU and China is limited by high transport costs and low quality.

"The global market imposes strict requirements for the quality of coal, but enrichment of Ekibastuz coal - the main coal reserves in Kazakhstan - is unprofitable. Also in order to increase export capacity it is necessary to carry out studies on the cost-effectiveness of coal from other fields," Magauov said.

Kazenergy CEO said the significant proven and potential coal reserves of Kazakhstan (34.5 billion tons), as well as low prices make this coal the most attractive energy source for power generation.

The thermal coal resource base in Kazakhstan is characterized by high volume, high levels of ash and sulfur content. Little activity has been observed in the exploration of coal deposits in Kazakhstan due to the large amount of undeveloped reserves (Kazakhstan has enough coal to last 250 years or more).

Kazakhstan ranks 10th in the world in thermal coal mining. By late 2012 the production of thermal and coking coal in the country amounted to about 114 million tons.

Most of the coal is produced by means of open-pit mining.

Translated by E.A.

Edited by C.N.

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