The price of North Korea’s coal exports to

China has plunged by 60 percent due to problems with quality on the back of

tighter regulations enforced by Beijing, Daily NK has learned.

The prices from last year, which stood at 110

USD per ton, tumbled to 47 USD recently, according to a source in China. “The

Chinese government has implemented new regulations since the end of last year

that are specific to the quality of the imported coal, so the amount coming in

has dropped,” the source told Daily NK on Monday. “If the volume of five toxic

substances including sulfur and arsenic is over the limit, the entire shipment

is turned back; this has led to a major drop in import volumes.”

The source explained this comes as Beijing

tries to curb air pollution by placing additional restrictions on coal imports.

“From North Korea’s point of view–since it’s so dependent on its mineral

exports–it’s a huge blow for it to be unable to sell its low-quality coal to

China,” she added.

After ships from North Korea’s Nampo and

Songnim Port arrive at China’s Dandong Port, they go through quality tests and

tonnage confirmation and then are distributed to areas such as Shandong

Province, according to the source, who said that “just until late last

September, coal from the North was considered to have high-efficiency and accordingly sold at 110 USD per ton, dropping to 47 USD in April.”

China announced tentative measures to

improve coal quality in September, enhancing restrictions against the level of

impurities and outlining that the shipment will be banned from entry if levels

surpass the limits.

Foreign-service earning companies under the

Ministry of People’s Armed Forces and the KPA General Political Department mainly

focus on exporting coal, and the foreign currency procured from exports are

used as funds for soldiers’ military apparel and other military funds. These recently imposed regulations have, as the source put it, “sent these channels for earning foreign currency into crisis mode.”

“The North has been increasing its trade

with Russia recently, but it’s not in the position to abandon trade with China

or give it less attention,” the source said. “We will have to see in which

direction the North’s trade leans, as it will certainly move toward where the scale tips

between the two countries [China and Russia].”