The drop in Kuzbass coal production in 2024 to 198.4 mio t (-15.8 mio t or -7.3% vs. 2023) persisted in the first two months of 2025.
Under the Ministry of Coal Industry of Kuzbass, in Jan-Fab 2025 mining enterprises in Kuzbass produced 33.6 mio t of coal (-0.8 mio t or -2.4% vs. Jan-Feb 2024). Compared to the previous month, the output in February 2025 decreased by 0.4 mio t or 2.4%.
Export supplies from Kuzbass in Jan-Feb 2025 totaled 18.3 mio t (+1.2 mio t or +7.1% vs. Jan-Feb 2024), still 1.3 mio t or 13.3% lower than in January 2025.
Kuzbass export supplies in 2024 shrank to 102.0 mio t (-11.8 mio t or -10.4% y-o-y).
Based on the results of January-February 2025, Russian Railways (RZD) is 2% behind the volumes of coal exports in the eastern direction, stipulated in the agreement with Kuzbass, the governor of the region said. In 2024, seven regions had an agreement with RZD to export coal in the eastern direction, while for 2025 the railway operator signed such an agreement only with Kuzbass.
Sanctions and the emerging trend of halting operations at Russian underground and open-pit mines, along with rising railway costs and logistical constraints, will continue to have a negative impact on production and supplies of high-quality Russian coal to the global market in 2025.
Due to lower exports the price of coal in the domestic market in 2024 has already increased by 10%, while cutting export shipments will push prices up even more.
The rise in production costs and logistics expenses amid falling global prices resulted in the growth of losses. The share of loss-making companies stands at more than 50%.
According to the Ministry, three underground mines and six open-pit mines ceased operations in the region in 2024.
Source: CCA Analysis
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