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Coal price in regions ranges from 7 thousand to 19 thousand tenge per ton — Ministry of Industry and Infrastructure Development

Thursday, 31 October 2019, 17:25:17

 

Today at a press conference in the Government’s press center, the chairman of the Committee for Industrial Development and Industrial Safety of the Ministry of Industry and Infrastructure Development Kanat Baitov clarified the situation with coal pricing in Kazakhstan.

As Baitov explained, today the bulk of coal for domestic consumers and the population is sold through the commodity exchange (89%). Coal is shipped to energy and industrial enterprises at selling prices for opencast mines under direct contracts.

“The price of coal for household needs and the population consists of the price of shipment of the mine (within 3-7 thousand tenge per ton, depending on the development conditions), railway tariffs for transportation, maintenance of rolling stock, exchange value of coal, as well as intermediary margins organizations and individuals delivering coal to the population,” said the chairman.

At the same time, an analysis by the Ministry of National Economy shows that the margin on 1 ton of coal after the commodity exchange by wholesale suppliers (intermediaries) is 90%.

“We studied every moment. We talked with each driver. Recently, many complaints have been addressed to suppliers that they allegedly inflate the price. We studied the transporters. There are three types of transporters. The first is a self-employed population, which themselves go to the mine, are loaded and transported to the population. They do not inflate prices. The second are those that are deadlocked. When you come, you choose coal and then agree on a price. Suppose coal is transported in the range of 100-120 km along Nur-Sultan. Still others are those who buy coal, take it to some route and stand waiting for people who can buy more. There are very few of them to influence the price of coal,” Baitov said.

He also drew attention to the fact that today the cost of coal for different grades from different deposits, depending on the cost of production and the distance of delivery to points of sale, ranges from an average of 7 to 19 thousand tenge in different regions.

“For example, we conducted monitoring in the city of Nur-Sultan. Identified 8 companies that sell coal at 11 points in different parts of the city. Prices for all types of coal are fixed. The average price is 12 thousand tenge excluding delivery. From Oct. 24 to 30, 141 cars or 9770 tons of coal were delivered to the capital,” Baitov informed.

At the same time, the demand for coal for the population until Dec. 31, 2019, is 300 thousand tons. The total coal consumption during the period 2019-2020 for the needs of the population was 500 thousand tons.

“The work to provide the population and the household sector with the necessary quantity and quality of coal in the heating season 2019-2020 is under the constant control of the ministry and local executive bodies,” Baitov summarized.


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