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Coal for cement plants: is local coal worth it in 2026?
Cement makers have had a hard year on fuel. Imported coal costs more, Afghan coal has dried up, and every extra dollar a tonne shows up in the price of a bag. Here is where local coal fits.
Why fuel costs are up
South African Richards Bay coal averaged about 114 dollars a tonne in the first quarter of this financial year, against about 90 dollars a year earlier. Landed in Pakistan with freight, that is roughly 133 dollars a tonne, Minute Mirror reported on 11 October.
Sherman Securities estimates that every 10 dollar rise in the coal price adds about Rs 30 to the cost of a bag of cement. The national average price of cement was close to Rs 1,600 a bag in early October, up about Rs 200 on a year ago.
What a cement kiln needs from coal
A kiln needs steady heat above all, which means a consistent calorific value from truck to truck. Ash ends up in the clinker, so it has to be known and stable. Sulphur matters because too much of it causes build-ups in the preheater and kiln inlet.
Moisture matters for grinding. Wet coal slows the coal mill and costs power to dry.
How Balochistan coal compares
Chamalang lump is the usual choice for cement: typically around 6,300 kcal/kg with about 11% ash, at about Rs 39,500 a tonne ex-Quetta. Sor Range is a little better on heat and lower in sulphur, around 6,500 kcal/kg and 3%.
Imported coal is usually more consistent and lower in sulphur. Local coal wins on price and on availability: no port delays, no exchange rate risk, and trucks rather than ships.
Blending, not replacing
Most plants that use local coal blend it with imported coal rather than switch completely. A blend lets you take advantage of the lower local price while keeping sulphur in the kiln within what your process can handle.
Your process team will set the ratio, usually starting low and increasing over a few weeks while watching kiln behaviour and clinker quality. Supply consistency is what makes this work, so agree a grade and a size range with your supplier and stick to it.
Buying for a plant
Ask for a lab analysis on every lot, not just a typical sheet, and have your own lab check samples on arrival. Agree in the contract what happens if heat value or ash falls outside the agreed range.
Plan deliveries around the season. Kilns and cement plants buy hardest in the cooler months, and trucks get tight. A standing weekly order is easier to fill than urgent requests.
Prices are indicative, per tonne, excluding sales tax, and change week to week. See today's sheet or ask us for a confirmed price.
