Presentation was made to the president Shavkat Mirziyoyev detailing the implementing market mechanisms in the coal industry, efforts to boost production volumes, and the launch of new investment projects Tuesday. The session reviewed long-term development plans and structural market reforms for the sector.
Reports show that the number of private coal mining enterprises in Uzbekistan has reached 18. Between 2023 and 2025, these private players expanded geological exploration and extracted 2.4 million tons of coal, injecting $117.2 million in private investment into the sector. Furthermore, by blending Angren and Shargun coal varieties, the industry supplied thermal power plants with 1.5 million tons of highly combustible, import-substituting local coal.
A major focus of the presentation was transitioning coal pricing to market-based principles. Attendees noted that the current practice of administrative price-setting harms the financial sustainability of producers, limiting their ability to attract new investment and scale up extraction volumes.
To address this issue, a proposal was made to eliminate state-regulated pricing for coal and remove it from the strategic list of socially significant goods, effective June 1, 2026. Under this new framework, coal prices will be driven by supply and demand, and the commodity will be sold to consumers via commodity exchange auctions.
This shift aims to foster open competition, guarantee a level playing field for all market participants, and incentivize producers to increase both output and fuel quality. Moving forward, thermal power plants and large-scale industrial consumers will be able to procure coal through a "request for proposals" process pegged to average exchange prices during the reporting period.
A dedicated mechanism will be deployed to guarantee a stable and reliable coal supply for households and public institutions. Under this framework, coal producers will sell their output through a specialized trading platform on the commodity exchange to authorized supplier merchants. These suppliers will be selected via an automated electronic system based on criteria such as warehouse capacity, available equipment, and corporate tax ratings.
New benchmarks will also be established for the quality and environmental safety of imported coal. Moving forward, the government will enforce strict standards regarding sulfur content, caloric value, and other physical parameters for all coal brought into the country. Importing, utilizing, or retailing coal that fails to meet these environmental and quality thresholds will be strictly prohibited within the Republic. Additionally, all future coal imports must be transported exclusively by rail.
The presentation also highlighted an upcoming investment project to develop the Nishbosh coal field. This site holds an estimated total reserve of 233 million tons and possesses an annual extraction capacity of 10 million tons. Valued at $494 million, the development project is expected to generate 880 new jobs.
Furthermore, a proposal was introduced to construct a new 1.4-gigawatt thermal power plant adjacent to the mining site. The project aims to attract $1.3 billion in investment to build four 350-megawatt power units utilizing cutting-edge ultra-supercritical technologies.
The construction phase will sustain 1,500 jobs, and once fully operational, the plant will create 310 permanent positions. The facility is projected to generate an average of 9.8 billion kilowatt-hours of electricity annually, allowing the country to save 2 billion cubic meters of natural gas per year.
Market analysis indicates that the mining sector has the potential to replace up to $2.1 billion worth of imports. This milestone will primarily be achieved by localizing the domestic production of specialized machinery, spare parts, chemical reagents, and heavy industrial equipment.
In light of this, officials have been instructed to draft a comprehensive Mining Localization Strategy spanning 2027–2030.
The president approved the proposals and issued corresponding directives to the relevant authorities to begin implementation.
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