Russian coal production to fall 1% year-on-year in 2024, will be at this year's level in 2025 - deputy PM

KEMEROVO. Dec 16 (Interfax) - Coal production in Russia in 2024 is forecasted to be slightly lower than in 2023, with a planned decrease of 1%, Russian Deputy Prime Minister Alexander Novak told reporters on Sunday.

"We expect production this year to be about 1% lower than in 2023. Next year, we plan to maintain the same level as this year - that is, at a stable production level," he said.

Coal exports are expected to remain at least at the 2024 level in 2025, he said.

"During the meeting [in Kemerovo], we discussed export volumes and the possibility of providing discounts to facilitate shipments towards the west. The exact export level in 2025 will not be lower than in 2024," Novak said. Domestic consumption will increase next year, allowing approximately half of the coal to be exported and the other half to be consumed within Russia, he said.

A total of 54.1 million tonnes of coal are expected to be shipped eastward from the Kemerovo region in 2025, maintaining the projected export volume for 2024, he said.

Exporting such a volume of coal from the Kuzbass would create opportunities to transport other goods, Russian Transport Minister Roman Starovoit told reporters.

"Regarding production shipments from the Kuzbass, if the decisions we discussed are approved by the country's leadership, enabling 54.1 million tonnes of coal to be exported eastward, additional capacity will become available for transporting other products, such as ferrous metals and containers, from the Kemerovo region. In the western direction, Russian Railways could provide additional capacity for transporting up to 20 million tonnes of cargo," Starovoit said.

Russian Railways will fulfill its commitment to export 54.1 million tonnes of coal eastward from the Kuzbass this year, he said. "It's important to note that at today's meeting, nearly all coal producers confirmed that the agreements [on coal exports to the east] for 2024 will be honored," Starovoit said.

"There are some clarifications regarding certain enterprises, and we will address those details today," he said.

As reported, coal production in Russia totaled 438 million tonnes in 2023, with exports totaling 213 million tonnes.