Ukraine bans coal exports
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Ukraine’s government has introduced a ban on exports of coal, says the Ministry of Energy.
The decision was made in order to ensure supply for the heating season, in particular, the accumulation of sufficient fuel reserves for thermal generation, the ministry says. “Also, the ban will help prevent abuse and manipulation of the quality of coal that can be used for thermal generation during the heating season, and instead is exported,” it adds.
Coking coal can therefore be considered as a component of the fuel balance for thermal generation in preparation for the autumn-winter period 2022/2023, the Ministry of Energy summarises.
Ukrainian steelmaker Metinvest tells Kallanish it is studying the decision to ban coal exports and how this will influence the activities of the company. ArcelorMittal Kryvyi Rih (AMKR) did not responded before deadline to requests for comment.
Ukraine’s Zaporizhkoks plant, part of Metinvest, decreased production of blast furnace coke in January-August to 466,700 tonnes, down by 19.3% on-year following raw material shortages.
In July, Metinvest put into operation the new southern longwall 13 of block 10 at Pokrovske coal mine (see Kallanish passim). Coal reserves are estimated at more than 1 million tonnes.
Metinvest's Pokrovske mine continues to produce coking coal and is currently operating four mining sites. The company also managed to find additional markets not only in Ukraine but also in other countries – Slovakia, Hungary, Poland – and is considering the possibility of cooperation with Western European plants. The coal export ban would presumably scupper these plans.
In August, Kazakhstan introduced a ban on exports of coal by road for six months effective 1 August (see Kallanish passim).
Prior to the Russian invasion of Ukraine, AMKR purchased 350,000 tonnes/month of coking coal, with the main supply coming from ArcelorMittal's Kazakhstan-based Temirtau steelworks. Previously, the plant received 30% of the required coal from Kazakhstan, which was shipped by rail through Russia. Now, this option has been removed.
Svetoslav Abrossimov Bulgaria