Uzbekistan is actively examining and extracting coal deposits, with the goal of reaching a production target of 10mn tonnes by 2025, the presidential press service said on May 13.

Known for substantial coal reserves estimated at around 2bn tonnes, the country is keen on maximising the potential of the resource.

Uzbekistan has made strides in coal mining in recent years, with annual production surging from less than 4mn tonnes in 2016 to 6.55mn tonnes by 2023. President Shavkat Mirziyoyev has stressed the importance of attracting investment for coal mines and implementing new projects. 

Projections indicate that Uzbek coal output is expected to hit 8mn tonnes in 2024, including a contribution of 900,000 tonnes from entrepreneurs.

In the development of Uzbekistan's coal mining industry, funding is also allocated for coal enrichment equipment. There is a plan to install 500,000 tonnes of such equipment at Shargun Coal joint-stock company.

Geological assessments are currently in progress across four sites in the Surkhandarya, Kashkadarya and Tashkent regions, which are scheduled to begin production next year. 

In April, Uzbekistan decided to stop fixing coal prices. They were previously set by the government through the Interdepartmental Commission on Tariffs under the Cabinet of Ministers.

Following the adoption of a new resolution, the state will no longer regulate coal prices. Responsibility for proposing pricing mechanisms will shift to the Ministry of Energy, which will work in conjunction with relevant bodies. This strategic adjustment aims to enhance the flexibility and efficacy of the coal market, enabling prices to accurately reflect shifts in supply and demand dynamics.

The move to deregulate coal prices is in line with Uzbekistan's wider energy sector reforms and dedication to market-driven strategies, officials say. By enabling market forces to determine coal prices, the government aims to enhance efficiency, foster competition and draw investment into the coal sector, they add.