Sibanthracite Group is ranked first in the production and export of UHG anthracite throughout the world, and is the largest producer of metallurgical coal at the domestic level. Sibanthracite Group is one of the most dynamically developing coal companies in Russia. The coal production amounted to 6 million tonnes in 2014, and 24.1 million tonnes in 2018.
China is anticipated to cap its annual coal imports to 300 million tonnes, according to a recent Bloomberg article. Some are suggesting that this move could set the tone of coal imports for China from 2019 and beyond. However, to truly understand China’s move on a larger scale, you need to look at the policy reasons on why they are limiting imports. The motivation behind the cap has little to do with the coal industry, but fear of direct competition to its local miners.
The cap on coal imports is an attempt for China to balance international trade with the support of its domestic coal market. Yang Xianfeng of the China Coal Transportation & Distribution Association held a conference in Shanghai regarding the cap. When asked to specify the reason for the coal import cap, he stated, “The target is to support both domestic supply-demand balance and also balanced global trade.”
China is aiming to provide opportunities to its domestic producers before importing from other sources. They are walking a fine line, trying to support local miners by minimizing competing coal sources. Russia is a leading producer and exporter of the sought-after coal variety, anthracite. Anthracite is much more carbon-dense than other types of coal, providing more energy and producing much less waste material.
Despite this year’s cap, China’s top firms began signing agreements for next year’s coal requirements. While coke coal imports will continue to decrease, it is expected that China, and other rapidly-developing countries will begin importing higher-quality coal sources, like anthracite. Sibanthracite is ready to cover growing demand.
Dmitry Bosov Sibanthracite Group is ranked first in the production and export of UHG anthracite throughout the world, and is the largest producer of metallurgical coal at the domestic level. Sibanthracite Group is one of the most dynamically developing coal companies in Russia. In 2018, it produced 24.1 million tonnes of coal and anthracite.