Europe’s ban on Russian coal is set to kick in in mid-August, leaving European and Asian coal importers scrambling to find alternative sources of fuel.

The major coal producing nations of Australia and Indonesia have already hit production limits. Meanwhile, South Africa, another major seller, is struggling with logistical problems which have also limited supply levels.

Europe will likely look towards South Africa and the US as new suppliers.

In South Africa, rail networks are the only issue to the country’s ability to boost production, but market participants see these issues resolved in some months. The American company of Coronado expects to produce around 19 MMT in 2022 with some of this volume going to Europe, though the exact figure has not yet been revealed.

Some South Korean and Japanese utility companies have halted Russian coal imports, with other to follow suit. Both nations are also looking for new suppliers as they gradually diversify coal supply away from Russia.