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Afghan Coal Supplier

A Vital Resource in Pakistan’s Energy Mix

Afghanistan, rich in mineral resources, has been a key coal supplier to Pakistan for years. Afghan coal, known for its high quality and competitive pricing, plays a significant role in meeting Pakistan’s energy demands. This blog explores various aspects of Afghan coal, including its prices, suppliers, specifications, companies involved, and the latest news impacting its trade.

Afghan Coal Prices in Pakistan

Afghan coal prices in Pakistan have been a topic of keen interest, especially given the fluctuating energy markets and geopolitical tensions. Typically priced competitively, Afghan coal offers an affordable alternative to domestic and other imported coal sources. Prices are influenced by factors such as transportation costs, border tariffs, and demand-supply dynamics. As of the latest updates, Afghan coal prices in USD range significantly depending on the quality and specific agreements between suppliers and buyers.

Here are some information on Afghan coal prices in Pakistan

Afghan Coal Suppliers in Pakistan

Several Afghan coal suppliers operate within Pakistan, ensuring a steady supply to meet industrial and domestic needs. These suppliers play a crucial role in the coal trade, managing logistics and ensuring the coal meets required specifications. Afghan coal suppliers in Pakistan include both Afghan-based companies and Pakistani importers who have established robust supply chains to facilitate the seamless import of coal. MIZ Builders: MIZ Builders is known as the top Afghanistan coal supplier among all Afghanistan coal suppliers in Pakistan. Elite Solutions: Elite Solutions is Pakistan’s largest industrial coal supplier and offers both local and Afghan coal. Afghanistan is one of the largest coal suppliers in Pakistan Afghan coal is imported daily in Pakistan, with most of its coal reserves located in the Takhar and Badakhshan areas.

Afghan Coal Specifications

The Afghan coal speciation’s vary depending on the mining region and specific seam. Generally, Afghan coal is noted for its high calorific value, low ash content, and relatively low sulfur levels, making it suitable for various industrial applications. For instance, Askari Cement, a significant player in the Pakistani cement industry, relies on specific Afghan coal grades that meet stringent quality standards for efficient and sustainable production.

Specifications

Afghan Coal Companies Working in Pakistan

Several companies are instrumental in the Afghan coal trade within Pakistan. These companies are involved in everything from mining and processing to logistics and distribution. Key players include large conglomerates with diversified interests in energy and minerals, ensuring that Afghan coal remains a vital part of Pakistan’s energy landscape.

Here is a list of some Afghan coal companies that are working in Pakistan:

  1. Azizi Hotak Coal Company (AHCC) – a leading coal mining company in Afghanistan, with operations in Pakistan.
  2. Afghan Coal Enterprise (ACE) – a state-owned company that has partnered with Pakistani companies to explore and extract coal resources.
  3. Ghori Coal Company (GCC) – an Afghan company that has invested in coal mining projects in Pakistan.
  4. Pamir Coal Company (PCC) – an Afghan company that has partnered with Pakistani companies to develop coal mines in the region.
  5. Shabnam Coal Company (SCC) – an Afghan company that has operations in Pakistan, focusing on coal extraction and trade.
  6. Nooristan Coal Company (NCC) – an Afghan company that has partnered with Pakistani companies to explore and develop coal resources.
  7. Afghan-Pak Coal Company (APCC) – a joint venture between Afghan and Pakistani companies to develop coal mines and trade coal.

Afghan Coal Export and Import Dynamics

The export of Afghan coal to Pakistan is a vital economic activity, fostering bilateral trade relations. Afghan coal import procedures involve detailed customs processes, quality checks, and adherence to environmental standards. The trade is pivotal for both countries, providing Afghanistan with a revenue stream while supplying Pakistan with an essential energy resource. According to the valuation advice, Customs Value of Afghan origin “coal” was determined to be at USD 0.140 per KG (or $ 140 PMT, C&F) vide valuation advice of 2022, issued by the then director Customs Valuation, Peshawar which valuation was in force, till to date.

Afghan Coal News in Pakistan

The increase in imports can be mainly attributed to the slowdown in Afghan imports and lower Richard Bay coal prices. PM Sharif had been told that the procurement of coal from Afghanistan initially required for the Sahiwal Coal Power (Sahiwal) and China Power Hub Generation Co (Hub), both of 1,320-MW installed capacity each. The total requirement of coal by these power plants is estimated to be 40,000 tons of coal per day depending on coal quality and characteristics. Pakistan will import coal at $200 per ton compared to the current international rate of $376 per ton, presumably of equivalent quality and characteristics, against rupees, thus substantially saving in price and foreign exchange too. The fact is that current international coal prices are unprecedentedly high and are already projected to decline in 2023. It is expected, of course, that the Pakistan authorities would have done their homework regarding the suitability of Afghan coal for power generation, but there is no information available, and the type or quality of coal being imported from Afghanistan has not been declared by the Pakistan side. Afghanistan has not exported coal to any country in the past, except small deliveries to Pakistan for use in the cement industry, and thus has no experience of coal handling in bulk.

Afghan Coal Price in USD

The price of Afghan coal in USD is a critical metric for international trade. It fluctuates based on market conditions, geopolitical factors, and bilateral trade agreements. Keeping track of these prices helps businesses plan their procurement strategies effectively.

Here is the latest information about the price of Afghan coal in USD

Afghan Suspend Coal Supply News in Pakistan

News of Afghanistan suspending coal supply to Pakistan can have significant repercussions. Such suspensions, often driven by political or economic reasons, lead to supply shortages and increased coal prices in Pakistan. Stakeholders closely monitor these developments to mitigate risks associated with supply chain disruptions. Afghan coal exports to Pakistan doubled: According to a 2022 report by research group XCEPT, coal exports to Pakistan likely doubled under the Taliban government and Pakistan, Afghanistan to soon finalize agreement on coal-fired power plants: Minister for Power Engineer Khurram Dastgir Khan says agreement for supply of coal from Afghanistan to Pakistan for coal-fired power plants will be finalized soon.

Cash Invoice Format for Afghan Coal

Maintaining proper documentation is crucial in the coal trade. A typical cash invoice format for Afghan coal includes details such as the quantity of coal, price per ton, total amount, supplier and buyer details, and payment terms. This format ensures transparency and facilitates smooth financial transactions between parties.

Conclusion

Afghan coal is a critical component of Pakistan’s energy strategy, providing an affordable and reliable energy source. From understanding the pricing dynamics to keeping abreast of the latest news, stakeholders must navigate a complex landscape shaped by economic, political, and environmental factors. As the demand for energy continues to grow, Afghan coal will likely remain a significant player in the regional energy market, fostering continued cooperation and trade between Afghanistan and Pakistan.