Cheap North Korean coal keeps flowing into China despite U.N. ban
North Korea’s mineral exports to China have recently increased, as Beijing appears to be enforcing sanctions on the North less strictly amid warming ties between the two countries. A source on North Korea told Daily NK on Friday that thousands of tons of North Korean coal were recently transferred to Chinese vessels through ship-to-ship transfers […]
North Korea's coal exports are growing despite a U.N. ban, as China appears to be enforcing sanctions less stringently. Thousands of tons of North Korean coal have been smuggled out of the country through ship-to-ship transfers, with over 3,000 tons shipped away each night this month. The volume of coal exports to China has increased by 30% to 40% compared to last year.
North Korean coal is currently priced at about $74 per ton, making it roughly 46% cheaper than Australian coal and 38% cheaper than Chinese coal. The proximity of North Korea to China also provides lower shipping costs. This trend of cheap North Korean coal entering China is likely to continue as long as global coal prices rise and demand in China remains strong.
However, this is a clear violation of United Nations Security Council Resolution 2371, which banned North Korean coal exports in August 2017. The sanctions are being ignored, and China's ability to enforce them has weakened. In addition to coal, North Korea is also exporting rare minerals like molybdenum and magnesite to China, often through land or sea routes facilitated by state institutions.
The demand from Chinese companies for North Korean minerals is high due to their low prices and shipping advantages. If China continues its lax enforcement, the flow of North Korean coal and minerals into China is expected to expand.
Written by urgent.news from Daily NK's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
