Far from being the most energy efficient nation, North Korea is reliant on coal for an estimated 90% of its energy needs. With annual output estimated at around 5.4 million tons of coal, the nation exports a significant portion of its reserves and is a major supplier of the resource in Asia.
Coal in North Korea is primarily sourced from the deserts of the southern Suan and Unsan regions, a geological feature known as the ‘Pyongyang coal basin.’ This area is abundant in resources, particularly lignite and anthracite coal, both of which are heavily utilized for electric power generation in the nation.
According to the Korean Trade Office, the nation exported 7.4 million tons of coal in 2016, of which, 5.2 million tons was exported to China alone. Though the costs of North Korean coal is lower than that of other countries, large punitive tariffs and taxes are imposed charging up to 20% of the value of the cargo levied by foreign governments and shipping companies, resulting in considerable losses.
Nevertheless, the export of coal remains a critical part of the North Korean economy, with China, India and Japan accounting for the majority of imports. In China alone, approximately 4 million tons of North Korean coal is imported annually, generating up to $125 million in revenue for the nation, a sum of which is used to prop up the criminal activities and nuclear ambitions of the unstable regime.
This economic impact has come into sharp focus as the UN Security Council imposed new restrictions on the export of North Korean coal, in an effort to curb the nation’s nuclear armaments. The new regulations, which came into effect in December 2017, significantly reduce the amount of coal exported from the nation, drastically cutting the revenue generated for the government.
Despite the restrictions, which were accompanied by other sanctions on oil, metal and seafood exports, experts believe the coal trade will continue, albeit on a much smaller scale, as North Korea relies heavily on coal production to fuel its nuclear activity. This reliance on coal, at a time when the rest of the world is beginning to move away from the resource, profoundly impacts the nation’s economy and international relations.
Environmental Impact of North Korean Coal Exports
The environmental impact of North Korean coal exports should also be considered. As burning coal is a major source of greenhouse gas emissions, the nation’s reliance on the resource poses an imminent threat to the environment, both to the nation and the people living there, as well as to neighboring countries. Pollution from coal makes up more than one third of emissions country-wide.
Those living close to coal mines in North Korea suffer from a variety of health problems, as emissions from burning the resource adversely affects air quality, leading to respiratory illnesses and other diseases. This has lent to a cycle of poverty and health degradation, which has been exacerbated by the years of sanctions recently imposed on the nation.
North Korea also has an antiquated energy structure, with most of its ‘Power Plants’ archaic in comparison to those found in other parts of the world. This antiquated structure has a considerable impact on efficiency, with the power plants providing an inadequate supply in comparison to demand, resulting in considerable wastage of electricity and resources.
The reality is, the export of coal from North Korea is a major source of income for the nation, providing revenue which is utilized in a variety of ways. Yet, the pollution and health hazards resulting from the burning of the resource, alongside the antiquated and inefficient energy infrastructure, pose a significant risk to the environment and public health, particularly in neighboring countries in the region.
The Rising Demand for North Korean Coal
Surprisingly, despite environmental and security risks, recent developments have seen a surge in demand for North Korean coal, with importers from Senegal, Morocco, Italy and the Philippines taking greater interest in the resource. In some cases, these countries are purchasing coal as part of a broader deal, as North Korea is often one of the few nations willing to offer such resources at a reduced cost.
These deals bolster the North Korean economy and supports the nation’s nuclear ambitions, undermining efforts from the UN to impose sanctions. This trend highlights the need for greater international cooperation in the quest to curb North Korea’s nuclear activity the only way forward would be for all nations to impose greater restrictions on the trade of North Korean coal.
Adding to the complexity are reports of North Korea exploiting loopholes in international trade agreements, allowing the nation to secure additional revenues by shipping coal to countries such as Russia, where it is re-labelled and sold as Russian coal.
Overall, while the UN sanctions are important, they are not comprehensive and a lack of dialogue and international cooperation only serves to encourage the nation’s illicit coal exports.
Political Impacts of North Korean Coal Exports
The export of coal from North Korea has considerable political implications, particularly with regards to the nation’s relations with other countries in the region. The South Korean government has long viewed the export of the resource to Japan with suspicion, with some experts claiming the city is deliberately downplaying its trade relations in an effort to avoid the ire of politicians in Seoul.
The United States has also viewed North Korea’s coal exports with suspicion, with some experts claiming the nation is using the resource to fund its nuclear weapons programs. The US has imposed stringent trade restrictions on imports from the nation, despite claims of increased pressure from China and Russia on the nation.
Overall, North Korea’s coal exports have been a source of contention for nations in the region, due both to the environmental impacts of burning the resource, as well as the political implications of the nation’s economic activities.
The Future of North Korean Coal Exports
The UN sanctions on North Korean coal are having an adverse effect on the nation’s economy, and while it is unlikely to be completely eradicated, it is clear that new methods of ensuring transparency and accountability need to be implemented.
Increased public awareness and education of North Korean coal exports is also essential. This can be achieved through increased media coverage, as well as initiatives and campaigns aimed at increasing the public’s knowledge of the issue.
At the same time, it is important to note the economic benefits of North Korean coal exports, as the revenue generated by the resource is a major source of income for the nation. Finding a balance between economic benefits and environmental and political risks is essential for the future of the nation and the region as a whole.
The Impact of North Korean Coal Exports on the Global Economy
North Korea’s coal exports have a considerable impact on the global economy, particularly in Asia, where it is the largest supplier of the resource. This implies the nation’s coal exports could cause disruption to global energy supply, particularly in the event of an escalation in geopolitical tensions.
Yet, despite the risks posed by North Korea’s coal exports, there is a strong economic logic to the trade. In some cases, importing North Korean coal offers a degree of cost savings, due to its lower cost and availability in the region. This has allowed some countries in the region to gain an advantage over their competitors, a trend which could be further amplified in the event of global sanctions.
Overall, while the risks posed by North Korean coal exports should not be underestimated, there is an opportunity for the nation to capitalize on its resources, particularly in the event of geopolitical turmoil.
The Impact of North Korean’s Coal Exports on the Nuclear Sphere
It is clear that North Korea’s coal exports have been and continue to be a key source of revenue for the nation. Reports from the Korea Trade Office and other international sources also suggest that a portion of the coal export revenue is used to fund the nation’s nuclear ambitions.
This raises the question of whether or not North Korea’s coal exports are in fact a major contributor to the nation’s nuclear ambitions. It is undeniable that the nation has persisted in its efforts to acquire nuclear weapons, despite ongoing international sanctions, leading some to suggest that North Korea’s coal trade could be an essential factor in the nation’s nuclear advancement.
Furthermore, while it is difficult to accurately measure the impact of North Korea’s coal exports on the nation’s nuclear development, it is clear that the revenue generated remains a critical component of the nation’s economy, a sum of which is used to bolster its military capacity.
The truth is, the exact role of North Korea’s coal exports remains murky, and without more stringent international restrictions on the resource, such as those imposed by the UN, it is unlikely we will ever gain a true understanding of the role of the trade in the nation’s nuclear ambitions.
Conclusion
The export of coal from North Korea is a complex and sensitive issue, due both to the risks posed by the resource to the environment, as well as the economic and political implications of the nation’s activities. It is clear that the nation’s reliance on coal is unfortunately a major contributor to its nuclear ambitions, yet the exact role remains difficult to quantify.
Ultimately, it is essential that greater measures are taken to ensure transparency and accountability across all international trade activities, particularly those involving North Korean resources. As the UN continues to impose sanctions, it is essential that all nations cooperate in order to ensure the nation’s nuclear ambitions are curtailed, as well as to protect the environment and public health for future generations.
