President Shavkat Mirziyoyev of Uzbekistan delved into plans aimed at bolstering coal production in the country, presidential press service reported on May 13. Estimates suggest Uzbekistan boasts coal reserves of approximately 2 bn tons, a resource that the nation is keen on harnessing to its fullest potential.
Forecasts indicate that coal production will escalate to 8 mn tons in the current year, with entrepreneurs contributing 900,000 tons to this output. Additionally, significant investments are being made in coal enrichment equipment, with plans to commission 500,000 tons of such equipment at the "Shargunkomir" joint-stock company.
Recognizing the imperative of adhering to international standards and enhancing coal quality, officials have been tasked with expediting investment projects and integrating global best practices into the industry.
On January 15, President Shavkat Mirziyoyev informed that, Uzbekistan is preparing to increase coal production by 22%. Extensive funding of UZS 1 trillion (equivalent to approximately $80.5 mn) annually has supported geological endeavors, leading to the exploration of 31,000 square kilometers of new areas.
Uzbekistan also has announced in April, its intention to eliminate state regulation of coal prices, a departure from previous practices where coal prices were controlled by the government due to its social significance. Previously, wholesale and retail coal prices were determined and sanctioned by the Interdepartmental Commission on Tariffs under the Cabinet of Ministers, typically on an annual basis before June 1st.
However, with the adoption of a new resolution, the state will cease to regulate coal prices. Instead, the Ministry of Energy, in collaboration with other relevant entities, will be responsible for proposing pricing mechanisms based on market dynamics. This shift aims to introduce greater flexibility and efficiency into the coal market, allowing prices to reflect supply and demand fluctuations.
The decision to deregulate coal prices aligns with Uzbekistan's broader energy sector reforms and commitment to market-oriented policies. By allowing market forces to dictate coal prices, the government seeks to improve efficiency, stimulate competition, and attract investment to the coal industry.
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