Coal Production Decline in Kazakhstan Met with Rising Prices

Kazakhstan's solid fuel industry is facing a downturn for the second year in a row, according to a recent  EnergyProm report, Orda reports.

Production volumes reached 112.6 million tons in 2024, marking a 3.2% decrease from 2023, which had already seen a 1.4% decline.

The production landscape remains dominated by three regions:

• Pavlodar region – 67 million tons
• Qaraganda region – 36.5 million tons
• Abay region – 7.6 million tons

The remaining regions collectively contributed just 1.5 million tons to the total output.

The situation is further complicated by persistent price increases, now in their seventh consecutive month.

In December 2024, they increased by another 0.8%. The sharpest spike was in September at 2.6%,  analysts note.

Coal prices have surged by 10.4% throughout the year – the most significant increase since 2018.

The impact is particularly severe in the Aqtobe and eastern regions, where prices have jumped by 24.6% and 15.8%, respectively.

In Aqtobe, consumers now pay around 23,000 tenge per ton.

Despite ongoing gasification efforts, coal remains a crucial heating source for 18% of Kazakhstan's households, with some regions showing even higher dependency rates of over 50%.

Looking ahead to 2025, consumers face additional challenges with expected increases in utility costs, including heating, gas, and AI-92 gasoline prices.

Original Author: Zarina Fayzulina