Russia Coal Output Slips by 2.4% in Kuzbass
Exports Face Mounting Challenges in Early 2025
Coal production in Russia’s key mining region of Kuzbass fell slightly in the first two months of 2025, as logistical constraints and economic pressures continue to weigh on the country’s coal sector. According to data from the Ministry of Coal Industry of Kuzbass, regional output totaled 33.6 million tonnes in January–February, down 2.4% (or 0.8 Mt) from the same period in 2024. February’s production alone slipped 2.4% compared to January.
Despite the modest decline in output, exports from Kuzbass rose 7.1% year-on-year to 18.3 million tonnes, suggesting strong demand from overseas buyers. However, that figure was still 13.3% lower than January’s export levels, pointing to near-term volatility in shipment volumes.
In 2024, Kuzbass exports had already shrunk by 10.4% to 102 million tonnes, driven by global sanctions, weak prices, and rising transport costs. These pressures have not eased in 2025. Russian Railways (RZD), the country’s dominant rail freight operator, is reportedly 2% behind on coal shipments to the east compared to agreed targets, according to the governor of Kuzbass. While seven regions had export agreements with RZD in 2024, only Kuzbass has a formal agreement for 2025, underscoring the tightening conditions for coal exporters.
The continued rise in rail tariffs and logistical bottlenecks have further eroded margins for producers. Over 50% of coal companies in Kuzbass are now operating at a loss. High production costs and falling global coal prices have accelerated the closure of mines across the region. The Ministry confirmed that three underground and six open-pit mines shut down in 2024.
Meanwhile, reduced export volumes have triggered a 10% rise in domestic coal prices, with further increases expected as overseas shipments decline. The combination of weaker global demand, export disruptions, and cost inflation is setting the stage for continued strain on Russia’s coal sector throughout 2025.
Is there a mistake and should be written "have triggered a 10% fall in domestic coal price"?
"reduced export volumes have triggered a 10% rise in domestic coal prices, with further increases expected as overseas shipments decline. The combination of weaker global demand, export disruptions, and cost inflation is setting the stage for continued strain on Russia’s coal sector throughout 2025.,