GLObAL COAL RISK ASSESSmENT - World Resources Institute

Long rail distances and inadequate railway capacity have
doubled the cost of inland coal transport in Russia over
the past few years, making Russian coal less competitive
in the global market. 61 From 2008 to 2030, railway
infrastructure investments will amount to US$55.5
billion. Five routes are targeted: the Hinterland connection
between Novorossiysk and Tuapse, new rail lines
between Ust-Luga and St. Petersburg, connecting mines
in the North Ural to Northwest ports, capacity extension
in Siberia, and the area around Vanino. 62
Most of the ports for Russian coal exports are located
in three regions: North Russia (the Baltic Sea Ports of
Murmansk, Vysotsk, Riga, Ventspils, Tallin, St. Petersburg,
and Ust-Luga); South Russia and Ukraine (Mariupol,
Tuaspse, and Yuzhny); and Far Eastern Russia
(Vostochny, Vanino, and Muchka). Coal exports through
the Baltic ports have dropped due to high transit fees
levied by the Baltic States, but have increased through the
Far East ports. 63 The seaports of Vanino, Vostochny, and
Nakhodka serve an important role in maintaining trade
with Japan and South Korea.
To respond to strong demand growth in China and India,
port capacity in the Far East will be further enhanced.
Vanino, the second largest coal port in Russia, will update
its handling capacity from 13.5 Mtpa to 18.5 Mtpa by
2013. The port of Posiet is also expanding, from 5 Mtpa to
between 7 and 9 Mtpa by the end of 2012. In total, Russian
export terminal capacity is projected to increase by about
13 Mtpa over the next five years. 64
Kazakhstan
Kazakhstan exports around 30 to 35 percent of its total
coal production. Most of Kazakhstan’s exported coal is
destined for Russia, but some is destined for a small number
of European countries. 65
Kazakhstan has the world’s third-largest open pit mine:
the Bogatyr mine, in the Ekibastuz Basin in northern
Kazakhstan. Bogatyr has a reserve of around 10 billion
tonnes of coal. Another massive coal basin is near Karaganda,
at the center of the country. With numerous other
smaller deposits, Kazakhstan has recoverable coal reserves
of around 34 billion tonnes, placing it among the world’s
top-10 producers. Coal production is expected to reach 134
Mtpa by 2015 and 151 Mtpa by 2020. Exports will increase
from the current 20 to 22 Mtpa, to 32 Mtpa in 2014. 66
Global Coal Risk Assessment
Each of Kazakhstan’s major coal producing companies
has announced plans to increase its output. Bogatyr Coal
is planning to nearly double its production by 2020. The
energy division of ENRC, Kazakhstan’s largest metals
company and one of the largest producers of electricity and
coal in the country, increased coal production to 20.1 Mtpa
in 2010. Between 2011 and 2015, ArcelorMittal, which has
eight coalmines in the Karaganda region, is investing some
US$300 million to expand its coal capacity. 67
mongolia
The recent development of coal mining and exporting in
Mongolia has significantly boosted its economy. In 2011,
32.99 million tonnes of coal was mined and 25.5 million
tonnes exported, making coal the country’s leading export
product. Recognizing the global demand for coal, especially
from Asia, the Mongolian government has prioritized
the coal industry for the past several years. 68
As a landlocked country, Mongolia must build new
transport infrastructure to deliver its coal to the Chinese
and Russian markets. The Mongolian Government has
announced plans to cooperate with the governments of
Russia and China to resolve these transport challenges.
Russia and Mongolia collaborated on the second phase
of a railway project in Mongolia. Russian Railways helps
transport Mongolian coal from Naushki station, on the
Mongolian border, to Far East ports and other points in
the world. 69
The distance from Mongolia to the Chinese port of Tianjin
is much shorter than the distance to the Russian seaports.
However, in addition to poor road and rail infrastructure,
inadequate border crossing capacity hampers
transport from Mongolia to China. In the South Gobi
region, coal mined by one the largest coal companies
in Mongolia is transported to China through the Shivee
Khuren-Ceke border, where crossing infrastructure was
recently expanded. 70
North Korea
Most North Korean coal is exported to China. 71 One of
North Korea’s largest coal mines is located in Jikdong,
Suncheon-si, Pyongannam-do, and is managed by the
Shuncheon District Coal Company and the Ministry of
Coal Industry. The mine is designed for a capacity of
1 Mtpa, and the current production is around 30,000
tonnes per annum (tpa). A 100 km railway delivers coal
from Shuncheon to Nampo Port. 72
WORKING PAPER | November 2012 | 17