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.
There is no doubt that the popularity of Russian coal is rising. A recent Reuters article details just how Russia’s recent strategic moves, like the Port Vera project by Dmitry Bosov from Sibanthracite Group, are pushing them past the competition to become the leader of coal exportation.
Russia has a distinct advantage over other European coal exporters. Its location enables access to ship to the Baltic Sea, Black Sea, and along with the European rail system. With transportation of coal being one of the critical drivers for overall cost, this helps Russian coal be priced more competitively. Russian coal costs less, due to lower sea and rail freight charges. The overall transport cost is considerably less than competitors like Colombia, the United States, and South Africa.
New environmental fuel regulations also place Russia at an even more significant advantage. IMO 2020, a new regulation, will increase sea freight costs further for coal exporters. With shorter sea distances, Russian coal will be even more cost-effective.
While coal consumption has declined slightly in the west, the Far East is importing record amounts. China and Japan’s imports increased by more than 14% last year. Currently, Russia trails behind Australia and Indonesia in coal exports, but that looks like it is changing rapidly.
Out of the top three world exporters of coal, the real competition is between Australia and Russia, as Indonesia primarily exports low-grade fuel. Australia’s shipments have slowed while Russia’s percentage gain has been growing considerably. Sibanthracite Group has been working to increase port capacity through the renovation of Port Vera in Cape Otkryty. This will greatly increase the ability of Russian coal companies to transport high-quality metallurgical coal to the Far East.
Because of Russia’s low costs and unmatched transportation abilities, it is only a matter of time before they are the world’s top producer and exporter of coal.
Dmitry Bosov’s 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.