North Korea’s mineral exports to China have recently increased, as Beijing appears to be enforcing sanctions on the North less strictly amid warming ties between the two countries.
A source on North Korea told Daily NK on Friday that thousands of tons of North Korean coal were recently transferred to Chinese vessels through ship-to-ship transfers in waters near Nampo port. More than 3,000 tons of coal are smuggled out in a single night this way, the source said, and such shipments have gone out on consecutive days this month.
It is difficult to gauge exactly how much coal North Korea has exported, but Chinese traders involved in transporting the coal say the volume coming in from North Korea appears to have risen by 30% to 40% compared with last year.
The price of North Korean coal exported to China currently varies depending on calorific value, but generally runs around 500 Chinese yuan per ton.
According to Bloomberg, Australian coal was priced at $138 per ton and Chinese coal at $120 per ton as of Aug. 21. Converted to dollars, the 500 yuan per ton price of North Korean coal comes to about $74, roughly 46% cheaper than Australian coal and 38% cheaper than Chinese coal.
North Korean coal not only carries a price advantage but also benefits from lower shipping costs, given its proximity to China. If rising global coal prices continue to align with demand inside China, the incentive to seek out cheap North Korean coal is likely to persist.
A sanctions ban being routinely ignored
North Korea’s coal exports, however, are a clear violation of United Nations Security Council sanctions. The Security Council imposed a total ban on North Korean coal exports under Resolution 2371, adopted in August 2017.
Even so, the recent rise in North Korean coal entering China shows that Beijing’s willingness to enforce sanctions and crack down on smuggling has weakened considerably compared with the past. The fact that the coal is entering the country through indirect means, such as ship-to-ship transfers at sea rather than formal customs channels, is further evidence that China’s monitoring has grown lax.
Amid this, North Korea is also reported to be actively pursuing exports of rare minerals to China, not just coal. According to the source, large quantities of North Korean minerals such as molybdenum and magnesite are also flowing into China, with the trade taking place over land or by sea depending on the item and region.
In many cases, mineral trade conducted overland is reportedly led by state institutions, including North Korean consulates in China. According to the source, it is difficult for anyone other than state institutions or privileged agencies with official approval to take part in the mineral trade.
For North Korea, minerals are an export that can bring in foreign currency relatively quickly. Chinese companies, for their part, favor North Korean minerals for their low prices and the shipping advantages that come with proximity, meaning the interests of both sides align.
If Chinese authorities’ lax enforcement and monitoring continue, the flow of North Korean coal and minerals into China is likely to keep expanding. “Many North Korean trading companies involved in the mineral trade are operating in China,” the source said. “North Korea is eager to sell, and demand in China isn’t small either, so the trade will keep growing.”
Reporting from inside North Korea
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August 31, 2026 at 07:59PM
by DailyNK(North Korean Media)