Plans to develop the coal industry and introduce market mechanisms reviewed

President Shavkat Mirziyoyev reviewed a presentation on the introduction of market mechanisms, the increase in production volumes, and the implementation of new investment projects in the coal industry.

Coal is considered an important resource for meeting the energy needs of economic sectors, thermal power plants, social institutions, and the population. In this regard, issues such as ensuring stable supplies, product quality, price transparency, a competitive environment, and compliance with environmental requirements in the industry are currently important.

During the first 25 years of independence, coal production increased from an average of 3.1 million to 4 million tons. Over the past nine years, this figure has risen to 10 million tons. In the upcoming autumn-winter season, coal production is planned to increase to 11 million tons.

To date, the number of private entrepreneurs engaged in coal mining has reached 18. In 2023-2025, they expanded geological exploration works and extracted 2.4 million tons of coal. A total of $117.2 million in private investment was directed to these processes. Using a mixture of Angren and Shargun coal, 1.5 million tons of high-calorific local coal, replacing imports, were supplied to thermal power plants.

During the presentation, the issue of switching to market-based coal pricing principles was considered.

It was noted that the current administrative price regulation affects the financial stability of producers and their ability to attract new investment and increase production volumes.

In this regard, it was proposed to abolish the practice of state-set coal prices effective June 1, 2026, and to remove coal from the list of strategic, socially significant goods whose prices are regulated by the state. Thus, coal prices will be set by supply and demand, and its sale to consumers will be conducted through exchange trading.

This approach will help create an open, competitive environment in the industry, ensure equal conditions for all participants, and encourage producers to increase volumes and improve product quality. Thermal power plants and large consumers will be able to purchase coal through a request-for-proposals procedure at average exchange prices for the relevant reporting period.

A separate mechanism will be introduced to ensure a stable supply of coal to the population and budget-funded institutions. Coal producers will sell their products through exchange trading to supplier entrepreneurs via a special trading platform. Entrepreneurs will be selected through an electronic system based on criteria such as warehouse and equipment availability, and a tax rating.

To eliminate the price gap in coal supplies to the population and budget organizations across the country, railway transportation will be carried out at a single tariff. The activities of Kumir Taminot LLC will be terminated, and 96 coal warehouses and equipment in the regions will be sold at auctions.

Special attention was given to supporting socially vulnerable segments of the population. From June to December, families included in the Social Register who purchased coal through the www.mycoal.uz system will receive one-time financial assistance of up to 600,000 UZS. This measure is intended to provide targeted protection for families in need during the transition to market mechanisms.

New requirements will also be established for the quality and environmental safety of imported coal. Requirements will be developed for sulfur content, calorific value, and other indicators of coal imported into the country. The use and sale of imported coal that does not meet these requirements will be prohibited nationwide. In the future, coal imports will be carried out exclusively by rail.

During the presentation, information was also provided about an investment project to develop the Nishbosh coal deposit. The deposit’s total reserves amount to 233 million tons, and the projected annual production capacity is 10 million tons. The project, worth $494 million, will create 880 new jobs.

In addition, it was proposed to build a new thermal power plant with a total capacity of 1.4 gigawatts based on this deposit. According to the project, $1.3 billion in investment is planned, and four power units, each with a capacity of 350 megawatts, will be built using ultra-supercritical technologies.

During construction, 1,500 jobs will be created, and after commissioning, 310 permanent jobs will be created. The plant is expected to generate an average of 9.8 billion kilowatt-hours of electricity per year and save 2 billion cubic meters of natural gas.

The presentation also included issues related to localization and the development of industrial cooperation in the mining sector.

The importance of increasing the share of local products in projects involving foreign investment, consolidating the needs of large plants and sectoral enterprises, and supporting local producers through long-term contracts was noted.

In this regard, instructions were given to develop a localization strategy for the mining industry for 2027-2030.

The Head of State approved the proposals presented and issued relevant instructions to the responsible officials.

UzA