Two companies control more than 80% of Kazakhstan’s thermal coal wholesale market

Market shares remain concentrated

Kazakhstan’s primary wholesale coal market remains highly concentrated, with the same large suppliers retaining dominant positions, according to a competition review covering 2024–2025. Kazinform and Kapital.kz reported the findings, citing the country’s Agency for Protection and Development of Competition, or AZRK.

In the segment supplying power-generating organizations, Bogatyr Komir and Kazakhmys Coal controlled a combined 84.1% of the market in 2024 and 81.6% in 2025. Their share therefore declined slightly but remained above 80%, leaving power producers dependent on two principal suppliers.

Concentration was also high in other segments. The ERG group and Karazhyra together supplied 74.8% of coal for municipal and household needs in 2024 and 67.9% in 2025. ERG alone accounted for 62.3% of coal sold for industrial use in 2024 and 69.1% in 2025.

Coal prices increased by up to 45%

AZRK said average primary wholesale prices for municipal and household coal increased by approximately 30–35% across Kazakhstan between 2022 and 2025. Thermal coal prices rose by 45% over the same period. The authority linked the market’s concentration primarily to restricted access to coal resources.

Kazakhstan’s main deposits have already been allocated among existing market participants. The sector operates under contracts lasting 25 years or more, with the possibility of further extensions. This limits the ability of new suppliers to secure resources and challenge incumbent producers.

Kapital.kz noted that Kazakhstan ranks 10th globally by coal reserves and has approximately 33 billion tonnes. At current production rates, those reserves could last for more than 300 years. The country approved a national coal-generation development project in March 2026, while construction of new power plants and modernization of existing facilities will require 7.5 trillion tenge in investment. Planned investment in the industry during 2026 totals 553.5 billion tenge.

Regulator proposes tighter market rules

AZRK has initiated measures that include regulating prices for thermal and municipal coal and increasing the share sold through commodity exchanges to 52%. It also proposes classifying off-exchange sales volumes as essential capacity and subsequently moving those volumes onto digital platforms.

The review identified unequal terms in subsoil-use contracts, including differences in mandatory payments. It also found insufficient transparency in the mechanism granting exclusive coal export rights and in the approval of transportation plans with Kazakhstan Temir Zholy. AZRK recommended clear eligibility criteria for exporters receiving exclusive rights, equal conditions for companies operating in the same market and better disclosure of railway capacity.

Essential-capacity rules and enforcement

The authority identified Shubarkol Komir and Karazhyra as essential-capacity holders for municipal coal. Bogatyr Komir and Kazakhmys Coal received that designation for power-sector supplies, while Eurasian Energy Corporation and Shubarkol Komir were named in the industrial segment. Their coal sales will be subject to equal-access rules.

AZRK previously found that Karazhyra had abused its dominant position following a 2022 wholesale-market review. The company was fined 87.4 million tenge, and the monopoly income was confiscated by the state. The authority said it would take further antitrust action if it discovers evidence of monopoly pricing during the new review period.