Kazakhstan contains Central Asia's largest recoverable coal reserves, with 34.5 billion short tons of mostly anthracitic and bituminous coal. Kazakhstan produced 106 million short tons (Mmst) in 2006, while consuming 78 Mmst, resulting in net exports of 28 Mmst. Russia is the largest importer of Kazakh coal, followed by Ukraine. State estimates show production fell by around 1.9 percent annually in 2007.

Coal production in Kazakhstan has fallen by roughly 35 percent since independence. Much of the decline has been due to mine problems (over 30 people died in mining accidents during 2004) and problems obtaining outside foreign investment to maintain their economic viability. EIA data show a modest upswing in coal production in 2000 and 2001 (see Country Energy Profile for Kazakhstan), and the country’s production again grew by over 10 percent last year. According to the Kazakh Ministry of Energy and Natural Resources, the country aims to be producing 100 million-105 Mmst annually by 2015.

During 2007, the Arcelor-Mittal Group pledged to invest $500 million to increase coal production in the Karaganda region by around 5 million tonnes. Kazakhstan's largest coal producer, Bogatyr Access Komir, which accounts for roughly 35 percent of the country's coal output, is a subsidiary of Access Industries Incorporated (U.S.A.). Bogatyr Access Komir develops northern Kazakhstan's Bogatyr and Severny coal fields and is the country's largest exporter to Russia. Russian firms are also stake holders in the Kazakh coal industry and roughly 16 Mmst are transited annually from Kazakhstan northward via rail to power plants in southern Russia.

Kazakh coal consumption fell from 97 Mmst in 1992 to a low of 58 Mmst in 1999 (see Figure 3). But in the last decade, manufacturing sector growth has provided incentives for increased coal consumption. Kazakhstan gets over 80 percent of its electricity production from coal. The country's largest power generator, AES-owned Ekibastuz No. 1 is located in north-central Kazakhstan.