ANKARA: Turkey’s shock $15/mt import tax on thermal coal for power generation could benefit Polish coal exports or open up alternative routes for traditional coal to reach Turkish utilities, with coal possibly reloaded at ports en route to achieve permissible origin certificates, market sources said this week.
The country’s energy ministry announced the tax Tuesday in the official gazette with immediate effect, after the cabinet approved it July 18 to reduce “the negative effects of imports” on the Turkish economy. It does not apply to thermal coal bought by end-users outside the power generation sector.
Sources said they were surprised by the announcement, particularly after a decree was passed in February raising the maximum volatile matter (VM) content utilities could burn, opening up opportunities for more Colombian coal to be sold into the country, as well as grades from Kazakhstan and Indonesia.
