[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Due to dropping worldwide coal prices, Afghanistan’s Ministry of Mines and Petroleum has decided to reduce coal royalties by $5 per tonne and customs charges by $15 per tonne.
According to JS Global, the move is favourable for North-based cement businesses and might result in a Rs. 5,800 per tonne decrease in Afghan coal costs (assuming a PKR/USD of 290), bringing the price to Rs. 44,000 per tonne.
With some reported improvement in the letters of credit (LC) situation recently, local cement producers, notably in the south, have attempted to go for South African coal due to the price difference between Afghan and other sea-borne imported coal.
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South African coal prices have fallen by around 75 percent since their previous peak of over $360 per tonne in early September 2022, trading around $95-100 per tonne.
At current rates, the delivered-to-plant price of South African coal for North-based enterprises is roughly Rs. 41,000 per tonne.[/vc_column_text][/vc_column][/vc_row]
