Russia: Kuzbass coal production falls 6.1% y-o-y in H1CY’25

• Exports shrink as major nations face economic slowdown
• Sanctions, high costs, rail tariffs hurt Russian coal miners

Mysteel Global: Coal production in Russia’s Kuzbass Basin, the country’s major coal-mining region, totalled 96.5 million tonnes (mnt) over January-June, registering a clear retreat of 6.1% compared with the same period last year, the latest data from the Ministry of Coal Industry of Kuzbass show.

The notable drop mainly reflected the pressure from shrinking export opportunities as major nations grappled with lacklustre economic growth as well as a persistent oversupply of this fossil fuel. Coal exports from Kuzbass declined by 3.8% y-o-y to 51.2 mnt in the first half of this year, the data indicated.

Meanwhile, Russia’s coal mining activity was also battered by Western sanctions, surging mining costs, and high railroad tariffs. More mines in Russia slipped into losses, and some had to cut production, Mysteel Global noted. Sources revealed that rail tariffs have mounted to account for as much as 50% of Russian coal miners’ cost mix.

In June, Kuzbass produced 14.7 mnt of coal, the lowest level since November last year, and the volume was lower by 3.92% from May and 6.37% from June 2024, as calculated by Mysteel Global based on the ministry’s data.

The Kuzbass region, located in southwestern Siberia, contributes nearly 60% of Russia’s total hard coal production and 80% of the country’s coking coal output.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.