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Coal

Kyrgyzstan Coal Industry Tilts Toward China

Kyrgyzstan coal is increasingly destined for China, as the country seeks to develop new transport links and infrastructure to grow exports to its western neighbour. A new coal cleaning and enrichment line has begun operating at the Torugart-1 deposit in Naryn Region, near the Kyrgyz-Chinese border. The project is being implemented jointly by state-owned coal company Kyrgyzkomur and the Chinese company Dun-Sen. According to Kyrgyzstan’s Ministry of Energy, the new equipment is intended to improve coal quality and reduce the environmental impact associated with coal extraction and preparation. The agreement to jointly develop the Torugart-1 deposit was signed on May 13, 2025. Geological surveys confirmed reserves of approximately 423,400 tons of coal within a 54-hectare mining area. The deposit is being developed through open-pit mining, with production expected to exceed 100,000 tons in 2026. The Chinese company has invested around $2 million in the project. “The launch of such facilities is strategically important for ensuring energy security, supplying the domestic market with high-quality coal, and supporting regional development,” Energy Minister Taalaibek Ibraev said. Torugart-1 began operations in November 2025. Shortly after its launch, Chairman of the Cabinet of Ministers Adylbek Kasymaliev visited the site and instructed officials to ensure stable operations while accelerating the start of coal exports through the Torugart border crossing with China. The development of Torugart-1 forms part of a broader strategy aimed at expanding Kyrgyz coal exports to China. On May 20, 2026, officials launched a separate Kyrgyz-Chinese logistics project valued at $430 million in the village of Nura in Osh Region. The project is being implemented through a partnership between Kyrgyzkomur and China’s Xinjiang Dacheng Yuanlong Technology. Its main objective is to facilitate coal exports from the Tekelik deposit through the Irkeshtam border crossing with China. The planned logistics hub will occupy a 10-hectare site and include two coal processing plants, as well as a conveyor-belt transportation system designed to move coal directly toward export routes. Once completed, the infrastructure is expected to handle up to 10 million tons of coal annually. The first phase includes construction of a 7.7-kilometer conveyor line, with long-term plans calling for an extension of up to 157 kilometers. Kyrgyzstan’s push to expand coal production coincides with growing demand for Kyrgyz coal in China. As previously reported by The Times of Central Asia, coal shipments to China have been rising, with the Torugart and Irkeshtam border crossings serving as the main export corridors. On December 3, 2025, the Kyrgyz government introduced a six-month ban on coal exports by road in an effort to stabilize domestic supplies and prices. The coal push comes as Kyrgyzstan looks for ways to ease pressure on its power system, which remains heavily dependent on hydropower and vulnerable to winter shortages when electricity and heating demand rise. However, the restrictions did not apply to exports passing through the Torugart and Irkeshtam border crossings, highlighting the delicate diplomacy involved in Kyrgyzstan's dealings with Beijing. The projects are significant for Kyrgyzkomur and for cross-border trade with China, although...

Coal Industry

Kazakhstan Plans Diesel Fuel Production from Coal

Two projects to produce diesel fuel from coal are underway in Kazakhstan, Energy Minister Yerlan Akkenzhenov said at a government meeting. According to the minister, the projects, each with a capacity of 100,000 tons of diesel fuel per year, are being implemented in the Pavlodar and Karaganda regions. Their costs are estimated at $63 million and $65 million, respectively. As part of efforts to develop the coal chemical industry, a $132 million project is also underway in the Karaganda region to produce metallurgical coke, with a capacity of 1 million tons per year. The minister said the three projects will create about 3,000 jobs. Currently, around 32,000 people are employed in the coal industry. Three additional projects are in the planning stage. These include a coke-chemical production facility in the Karaganda region with coal tar processing capacity of up to 200,000 tons per year, benzene production of up to 35,000 tons, and coke oven gas purification. Authorities are also considering the construction of a plant in the Abai region to produce ammonia and urea from coal (300,000 tons per year of each product), as well as a project to produce up to 2 billion cubic meters of gas from coal. The minister noted that the development of the coal chemical industry faces several challenges, including high capital intensity, technological complexity, and the need to establish an appropriate regulatory framework. He added that developing this sector would reduce dependence on imported petroleum products and increase exports of higher value-added products. The coal industry remains strategically important to the country’s economy. In 2025, coal production reached 115.9 million tons, an increase of 7% compared to the previous year. Domestic consumption totaled 85.9 million tons, while exports stood at 30 million tons. In 2026, coal production is projected to reach 128.9 million tons. Investment in the sector amounted to approximately $655 million in 2025 and is expected to rise to $1.1 billion in 2026. The Times of Central Asia previously reported that Kazakhstan’s coal reserves could meet the country’s energy needs for 200-300 years. The authorities have also approved a coal-fired power generation development program that involves the construction of eight new power plants and the modernization of 11 existing ones.

Coal

Kazakhstan’s Largest Coal Mine to Increase Production from 2026

Bogatyr Kömir LLP, the operator of Kazakhstan’s largest coal mine in Ekibastuz, in Pavlodar region, plans to gradually increase production beginning in 2026, the Ministry of Energy reports. The company, which uses open-pit mining, is the country’s largest supplier of coal to the domestic market, accounting for about 38% of total coal output. According to the ministry, coal production in Kazakhstan reached 120.5 million tons in 2025. With balance reserves estimated at 2.4 billion tons, the company is positioning itself for long-term growth. Under current plans, output is expected to rise from 42.7 million tons in 2024 to 45.2 million tons by 2026, reaching 56.5 million tons annually by 2032. The expansion will be backed by a $733 million investment program for 2026-2032. Funds will be allocated to capital construction and technological upgrades, including the introduction of cyclic-flow technology at the Severny open-pit mine and the development of new spoil tips. The company also plans to modernize its mining transport fleet and reconstruct and overhaul existing facilities to ensure stable fuel supplies to the energy sector. The Ministry of Energy links the production increase to the implementation of a national project to expand coal-fired power generation. The Pavlodar region already plays a central role in the country’s energy system, accounting for about 42% of Kazakhstan’s total electricity generation last year. Key elements of the program include expanding the Ekibastuz GRES-2 power plant, increasing its installed capacity from 1 GW to 2.1 GW; constructing a new Ekibastuz GRES-3 power plant with a capacity of 2.64 GW using “clean coal” technologies; and modernizing the GRES plant in Aksu. According to the ministry, a significant increase in power generation requires advance expansion of the raw material base. Additional electricity demand is also expected from digital infrastructure projects. As previously reported by The Times of Central Asia, authorities plan to create a “valley” of data centers in the Pavlodar region focused on digitalization and high-performance computing.

Coal

Kyrgyzstan Government Temporarily Bans Road Coal Exports as Shipments to China Surge

On December 3, the government of Kyrgyzstan imposed a six-month ban on the export of coal by road transport. The restriction aims to stabilize the domestic market amid rising demand and does not apply to shipments passing through the Irkeshtam and Torugart checkpoints on the border with China. Despite its environmental impact, coal remains a critical fuel source for winter heating in Kyrgyzstan, which continues to face chronic electricity shortages. In an effort to curb domestic price increases, the government introduced temporary state regulation of coal prices in September, effective for 90 days. While domestic needs remain high, coal is also a key export commodity. China has emerged as a growing destination for Kyrgyz coal, with exports reaching 11,600 tons in September 2025, the highest monthly volume recorded this year, according to China’s General Administration of Customs. Data from the National Statistics Committee of Kyrgyzstan shows that in 2024, the country exported 1.1 million tons of coal worth $52.7 million. Uzbekistan remained the largest buyer, importing 996,600 tons. However, exports to China surged to 118,200 tons, up from just 13,000 tons in 2023. In late November, Chairman of the Cabinet of Ministers Adylbek Kasymaliev visited the Torugart border checkpoint and the newly opened Torugart-1 coal mine, which began operations on November 12. Kyrgyzkomur OJSC, the national coal company, holds the exploration license for a 557.6-hectare section of the deposit in the At-Bashy District of Naryn Province. Total reserves are estimated at 423,400 tons. Kasymaliev instructed officials to ensure stable operations at the site and to initiate coal exports from the Torugart-1 mine as soon as possible.

Trade

Uzbekistan and Taliban Sign Trade Deals as Coal Shipments Pivot from Pakistan

Afghanistan International has reported that the Taliban administration in Afghanistan’s Balkh province has signed new trade agreements with Uzbekistan, signaling a shift in Kabul’s commercial strategy amid growing tensions with Pakistan. According to Haji Zaid, spokesperson for the Taliban-appointed governor in Balkh, Afghan coal will now be exported to Uzbekistan under the newly signed agreements, replacing previous shipments to Pakistan. In exchange, Uzbekistan will export cement and pharmaceuticals to Afghanistan. Zaid stated that the Taliban, in response to border closures and disrupted trade with Pakistan, is seeking to strengthen economic ties with neighboring countries, particularly Uzbekistan and Iran. Persian-language media also reported that Taliban officials are increasingly urging Afghan traders to seek alternative commercial and transit routes. The Taliban’s Ministry of Finance has claimed that the deterioration of trade with Pakistan has had “no negative impact” on Afghanistan’s overall trade volume, asserting that customs revenues have remained stable. The ministry added that it would fully support traders using new trade corridors. However, Afghan economic experts have challenged the Taliban’s claims. Economist Reza Farzam told local media that assertions about Pakistan’s trade freeze having no impact are misleading, arguing that Afghanistan currently lacks sufficient substitutes for its traditional transit infrastructure through Pakistan. Earlier, Pakistan’s Dawn newspaper reported that the month-long closure of the Torkham border crossing caused more than $4.5 billion in economic losses on both sides of the border. The latest agreements build on earlier announcements that Uzbekistan plans to import Afghan coal as part of broader efforts to balance bilateral trade. During a recent visit to Kabul, an Uzbek delegation expressed interest in purchasing coal, resulting in private-sector deals worth $4.5 million. Discussions also covered trade incentives, joint exhibitions, and a proposal from Uzbekistan to construct a cement plant in Afghanistan’s Samangan region. The Taliban administration has further stated that Afghan agricultural products will be exported to Central Asia, South Asia, and Europe via air corridors through Uzbekistan, as part of a wider strategy to diversify the country’s trade routes.

Coal

Kyrgyzstan Boosts Coal Production Ahead of Winter Heating Season

Kyrgyzstan has increased domestic coal production in preparation for the winter, with four of the country's six deposits now operating at full capacity, according to the state-owned enterprise Kyrgyzkomur, which oversees coal mining and distribution at socially affordable prices. To ensure stable fuel supply, Kyrgyzkomur has signed agreements with 126 coal trading bases nationwide. These sites sell coal at reduced prices, aimed at supporting low-income households and easing the burden on public utilities. In the first nine months of 2025, Kyrgyzstan produced 655,000 tons of coal, while overburden removal reached 6.8 million cubic meters. Coal from the Kara-Keche deposit remains the most in demand. It is also supplied to the Bishkek thermal power plant, which provides the capital with heat and electricity. However, local coal is considered lower in quality compared to imports, particularly coal from Kazakhstan’s Shabyrkul deposit. To stabilize the market and prevent price hikes, authorities have tightened oversight of the coal sector. Under an order issued by the Ministry of Economy on September 26, 2025, temporary state regulation of coal prices was introduced for 90 days. “The maximum retail prices are set at $80 per ton for imported coal and $66 per ton for local coal from the Kara-Keche deposit, mined by Kyrgyzkomur,” said Maksat Akylbekov, chief inspector at the Antimonopoly Regulation Service, in an interview with Tbe Times of Central Asia. To curb speculation and prevent the sale of low-quality coal, Bishkek authorities have banned the retail sale of coal in bags. Fuel can now only be purchased by the ton at designated depots. As a result, smaller traders have relocated to the outskirts of the city, where they continue to sell coal in smaller quantities. Sellers report that many residents request 100-200 kilograms of coal, as not all can afford to purchase an entire season’s supply at once or have the storage capacity. In some cases, sellers informally accommodate these buyers. Violations of the government’s pricing rules are subject to fines of $35 for individuals and $150 for legal entities.