Archive for the ‘Energy’ Category

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DPRK unexpectedly discharges water from Hwanggang Dam (again)

Wednesday, June 29th, 2011

According to Yonhap:

North Korea began discharging water from a dam near the border earlier this week without notifying South Korea, officials here said Wednesday.

Officials here in this Gyeonggi Province town, north of Seoul, said the North earlier this week opened the Hwanggang Dam near the Imjin River, which flows out to South Korea’s west coast, and has kept it open since.

“No damage has been reported around the Imjin River,” an official said. “We’re not concerned about (the water level of the river) yet.”

Officials said the water level on the Pilseung Bridge near the border, which serves as a gauge of North Korea’s water discharge, reached 4.49 meters as of 8 a.m. Tuesday, well over the warning level of 3 meters, and then fell to 4.03 meters at 4:20 p.m. Wednesday before inching back up to 4.04 meters by 5 p.m.

Officials said it usually takes 10 hours for water from the Hwanggang Dam to reach the Pilseung Bridge.

After the North Korean discharge, South Korea opened its Gunnam Dam to control the water level. The dam, which began operations last July, was specifically designed to capture flash floods from North Korea.

North Korea was hit by Typhoon Meari this week, officials added, suggesting that a sudden rise of the water level there might have forced the discharge.

It is the same dam that North Korea opened without prior notice in September 2009. The ensuing flash flood claimed six South Korean lives. At a later inter-Korean meeting on flood control, North Korea expressed regret over the incident and vowed to give prior notice before future discharges.

Last year, North Korea also sent water from the Hwanggang Dam and did notify officials here through the military communication line. The water near the Pilseung Bridge rose to 8.67 meters, but the Gunnam Dam helped prevent damage along the Imjin River.

An official said the local authorities were remaining on guard.

“The water level can surge suddenly,” a local official said. “In 2009, when six South Koreans were killed, the level on the Pilseung Bridge was 4.69 meters. So we’re closely monitoring the situation.”

Additional Information:
1. The South Korean government has also warned its people to be on the lookout for land mines that wash downstream from the DPRK.  See here and here.

2. Read about the 2009 Hwanggang Dam incident here.

3. Here is an older satellite image of the dam (Google Maps).

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Posted in Dams/hydro, Energy, South Korea | 1 Comment »

Recent DPRK publications

Sunday, June 19th, 2011

Imports from North Korea: Existing Rules,Implications of the KORUS FTA, and the Kaesong Industrial Complex
Mark E. Manyin, Coordinator, Jeanne J. Grimmett, Vivian C. Jones, Dick K. Nanto, Michaela D. Platzer, Dianne E. Rennack
Congressional Research Service (CRS)
June 2, 2011

Download the PDF here.  This publication has been added to the list of previous CRS reports on the DPRK here.

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Trade with China 1995-2009
Nathaniel Aden
Nautilus Institute
June 7, 2011

View the paper here.  A link to this paper has been added to the DPRK Economic Statistics Page. The Nautilus Insitute has also posted links to some very interesting presentations from the 2010 DPRK Energy and Minerals Working Group.

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[Book] The Contemporary North Korean Politics: History, Ideology, and Power System (현대 북한의 정치: 역사, 이념, 권력체계)
Jong Song-Jang (정성장)
More information TBA, but see here and here (Korean).

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[Book] Architekturführer Pjöngjang (German: Pyongyang Architecture Guide)
Philipp Meuser
Order here at Amazon. More here and here.

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Posted in Architecture, China, Coal, Construction, Copper, Electricity, Energy, Gold, Graphite, International trade, Iron Ore, Mining/Minerals, Natural Gas, Oil, Sand, Statistics, Trade Statistics | Comments Closed

DPRK-ROK oil exploration deal allegedly inked

Thursday, June 16th, 2011

According to the Korea Herald (h/t L.P.):

A number of economic cooperation projects appear ready to take shape between North Korea and China.

A businessman here claimed the North and China have signed a more concrete agreement last year following up on a 2005 preliminary deal to jointly develop an offshore oil field.

“The North has agreed with China to jointly develop an offshore oil field in the waters off Nampo,” a western coastal town, said Kim Young-il, chief executive of a South Korean trading firm and inter-Korean trade adviser to the Korea International Trade Association.

“The North Korea-China agreement on joint development of the oil field seems to have taken place last year.”

It is estimated that some 20 billion tons of crude oil is buried under the Bohai Gulf continental shelf which stretches across the Korea Bay between the North Pyongan Province and China’s Liaoning Province, Kim said during a policy debate session hosted by a legislator.

“The joint exploration would be economically viable because, once about a third of the oil reserve can be extracted, they can extract between 7 and 8 billion tons, enough to meet China’s entire demand for nearly 30 years,” Kim said.

Read the full story here:
Communist allies seek strategic interests
Korea Herald
Kim So-hyun
2011-6-1

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Posted in China, Energy, Foreign direct investment, Oil | Comments Closed

The recent trend of Kim Jong Il’s official activities after China visit

Tuesday, June 14th, 2011

Institute for Far Eastern Studies (IFES)
NK Brief 2011-6-13

Kim Jong Il has made four official appearances from May 28 to June 3 since his last visit to China, starting with industrial facility inspections. This could be construed as North Korea’s attempt to highlight current facility-building projects and the superiority of its leadership in improving the people’s economy, and to rally the North Korean people.

Kim commemorated his recent unofficial visit to China by attending a celebratory performance. In a speech, he commented on the outcome of the visit and encouraged solidarity and morale building of its people.

On his return from China, Kim provided field guidance at the construction site of Huichon Power Plant. He called for the early completion of the plant as an essential step in resolving North Korea’s chronic power shortage. Specifically, Kim commented, “Resolving the power shortage is the major task in order to build a strong and prosperous nation . . . . appropriate units must ensure timely production of facilities, equipments and materials.” Kim is reported to have visited the construction site of Huichon on five occasions from September 2009 to December of last year.

In addition, Kim visited a fish breeding institute and Kosan Fruit Farm, encouraging the pursuit of technology development projects through modernization and scientific advancement.

At the fish breeding institute, Kim called for the improvement of the ecological environment of the fishery and for the increase in fish production by constructing more fish farms and by advancing the facility in a way that meets the demands of industrialization and modernization.

Similarly at the Kosan Fruit Farm (located in the Gangwon Province), production was stressed once again as an important task. Kim called for the improvement in fruit production through modernization and the integration of science and technology. This was Kim’s third visit to the farm since 2008.

Kim’s official visits this year are slightly fewer in number compared with the same period of time last year: from 70 visits in 2010 (19 military-related, 29 economic-related, 6 foreign-related, 13 other activities), to 60 visits in 2011 (13 military-related, 28 economic-related, 6 foreign-related, 13 other activities) in 2011.

All major DPRK news outlets covered Kim’s recent visit to China. The Politburo of the Workers’ Party of Korea Central Committee organized a meeting calling for the strengthening of DPRK-China relations. Likewise, the Presidium of the Supreme People’s Assembly praised the current DPRK-China economic cooperation activities and growing friendship between the two nations.

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Posted in 2012 Strong and Prosperous Nation (Kangsong Taeguk), Agriculture, China, Electricity, Energy, Food | Comments Closed

The blueprint for the development of the Rajin-Sonbong (Rason) economic and trade zone is released

Tuesday, May 31st, 2011

Institute for Far Eastern Studies (IFES)
2011.05.26

On May 23, the DPRK released the “Outline of DPRK-China Joint Development Plan for Rason and Hwanggumpyong Economic and Trade Zone” consisting of detailed blueprint of two countries’ recent bilateral joint development deal.

According to Yonhap News, China and North Korea are planning to turn the Rason and Hwanggumpyong areas into a comprehensive industrial complex of tourism and manufacturing producing automobiles, mobile phones, agricultural and chemical products.

In addition, the Law on Rason Economic and Trade Zone and the Special Law on Hwanggumpyong Zone will adopt market economy principles which will permit foreign bank investments and independent contracts between corporations and workers. Although the development plans are not definite yet, it is significant since it hints at North Korea’s shifting position on opening up and economic development.

The bilateral development plan between Pyongyang and Beijing will stretch from Rajin, Sonbong, Ungsang, to Gulpo areas.

In the Rajin area, four major industrial complexes will be constructed consisting of storage, logistics and distribution centers, state of the art technology, and equipment, clothing and food manufacturing. In the Ungsang area, comprehensive a wood processing complex will be built while in the Gulpo area, a high-efficiency agriculture zone will be constructed. In the Sonbong area, truck manufacturing factories will be built along with other metal producing factories. In Rajin, docks will be built for ship building and maintenance.

There are also plans of developing the Rason area into an international tourism zone. There are immediate plans to build basic tourism infrastructure such as hotels, resorts, and roads for sightseeing. The long-term goal is to build a grand Northeast Asia tour course, which will include Yanbian of China; Rason, Chongjin, Mount Chilbo and Mount Kumgang of North Korea; Vladivostok and Sakhalin of Russia; Sapporo and Nakata of Japan; and Sokcho and Busan of South Korea.

As for the Hwanggumpyong area, four major industrial complexes will be established: one each for information, tourism and culture, modern protected agriculture, and food processing. More specifically, Hwanggumpyong will connect information between Hwanggumpyong and the border city of Dandong in China. In addition, culture and tourism will be developed through promotion of Arirang and other cultural performances and exhibitions.

As for the high-efficiency agriculture zone, a modern agriculture technology research center will be established and China-DPRK joint markets will be set up to serve as a central commerce center.

To assist with the industrial development in the area, land and sea routes will be developed where roads and railroads will be built and Rajin will be upgraded to a comprehensive and multi-purpose port.

There are additional plans of constructing a coal power station to replace the current thermoelectric power plant in Sonbong. There is also discussion of possibly developing other alternative energy plants, such as wind and solar. There are also plans of building basic facilities of mobile telecommunication to promote international communication.

Hwanggumpyong is an island on the Yalu River and the new developments in building ports and roads along with distribution network, Internet, and mobile telecommunication will become a link connecting North Korea with China.

Pyongyang is pursuing development through multiple cooperation channels. It has plans of establishing three-tiered cooperative system with joint management committee, joint development management committee and investment development corporation with Beijing. These committees will be responsible for amending and negotiating any issues that may arise during the process of development and supervise various areas of investments, enterprises, and environment and as well as inspect land and commerce development and basic facility operations.

Both Pyongyang and Beijing will attract foreign investments through market-based tax and financial policies in the Rason and Hwanggumpyong zones. Specifically, tax refund policy will be implemented and tariffs will be lifted from any imported equipment and materials necessary for production. The foreign investment companies will be allowed to choose their own banks or even establish financial institutions to assist in their business management.

In addition, workers and companies will be permitted to sign their own labor contracts. The companies will be granted autonomy in hiring and firing, pricing, bankruptcy, liquidation and other business practices based on market principles.

As for investment protection policy, foreign investors will be permitted to transfer or inherit profits and assets and foreign investor’s investments and assets will not be collected as national property by North Korea.

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Posted in China, Coal, Economic reform, Electricity, Energy, Foreign direct investment, Hwanggumphyong and Wihwado Economic Zones (Sinuiju), Rason Economic and Trade Zone (Rajin-Sonbong), Sea shipping, Special Economic Zones (Established before 2013), Tourism, Transportation | Comments Closed

Electricity supplies in the DPRK

Monday, May 16th, 2011

Pictured above (Google Earth): Pukchang Thermal Power Plant (북창화력발전련합기업소)

According to the Daily NK:

A source from Pyongyang reported the latest on the 14th, saying, “From April the electricity situation got a bit better, so now between 8 in the morning and 5 in the afternoon the electricity goes on and off repeatedly.”

But, the source added, “Between 10 at night and 5 in the morning, it is provided stably.”

According to the source, in the winter period from January to March, electricity was only supplied at all between midnight and 4 or 5 in the morning.

Residential areas of the city receive their electricity mostly at night because factories and official buildings are prioritized during daylight hours.

However, if, for instance, from 8 A.M. to 12 P.M. electricity goes to a shoe factory, and then from 12 P.M. to 5 P.M. it goes to a fabric factory, people in the neighborhood of those factories might be able to charge batteries or watch DVDs during that time.

However, outside the capital things are worse, as usual. In the case of Nampo on the West Sea coast, there is almost no daytime electricity supply at all. According to a source from the city, “In general there is no electricity. It comes around two days in ten, but even at those times it doesn’t usually work for longer than two hours.”

“The electricity situation is getting worse, and people say this is because electricity generated at Bukchang [Pukchang, 북창] Power Plant is all sent to Gangsun Steel Mill,” the source added.

Hyesan in Yangkang Province is in much the same boat. When Kim Jong Il conducted an onsite inspection at Hyesan Youth Mine in April the authorities provided the area with electricity, but now it never comes.

A Hyesan source explained, “They send electricity for 24 hours on Kim Il Sung and Kim Jong Il’s birthdays, but this year it was unstable even then. When May came, they started to give us electricity from 6 to 10 in the evening, but it is unstable so for houses with no transformer this electricity is useless.”

The source from Nampo reported that some wealthier people apparently used to get electricity by offering money to local factories, approximately 15,000 won per month, but that this avenue has also been closed off.

The practice stopped when a decree was handed down stating, “Those who use stolen electricity will be exiled.”

There is also the ongoing problem of copper theft, the Nampo source revealed, explaining, “Before April 15th this year, electrical cables were stolen from Nampo Samcheon-ri Chosun-China Joint Factory (a clothing factory), so for five days the factory couldn’t operate. The workers chipped in with around 300 to 500 won each from their wages to purchase cables so that electricity could come again.”

Since electricity does not flow in most cables continually, it is easy to sever them to obtain the saleable copper inside. This copper, which is relatively expensive, is then sold to smugglers who sell it in China.

The “Gangsun Steel Mill” (Kangson Steel Mill) is now the “Chollima Steel Mill” and it was home to the Chollima Movement (learn more here).  It is true that the DPRK has been recently emphasizing steel production (via recycling of scrap), but it is strange that people would literally think it is draining all the power from the Pukchang Thermal Power Plant since the two facilities are not directly connected on the power grid (or even close to each other).  It is pretty obvious from Google Earth imagery that the steel mill receives its power from the Pyongyang and East Pyongyang Thermal Power Plants.  It could be that the reference to the “Kangson Steel Mill” (which is itself interesting since the factory has not gone by that name in years) is a generic reference to the state’s prioritization of heavy industry over houshold electricity use.

Read the full story here:
Electricity Supplies Showing No Big Improvement
Daily NK
Lee Beom Ki and Jeong Jae Sung
2011-5-16

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Posted in Electricity, Energy, Light Industry, Manufacturing | Comments Closed

DPRK mineral exports top US$860m last year

Saturday, May 7th, 2011

According to Yonhap:

North Korea’s exports of mineral resources jumped 17-fold in a decade with its outbound shipment of coals and iron ores leading the growth, a U.S. report showed on Saturday.
According to Radio Free Asia (RFA), the communist state’s exports of mineral resources reached US$860 million last year, compared with some $50 million in 2002.

Citing data compiled by the Korea Trade-Investment Promotion Agency [KOTRA], the RFA said exports of such minerals as coal and iron ore accounted for 63 percent of its total exports to its strongest ally China.

In the first quarter of the year, the North earned around $154 million by exporting coal to the neighboring country, compared with $9.68 million seen a year earlier.

North Korea’s mineral reserves are believed to be among the largest in the world, worth some 7,000 trillion won, based on 2008 prices, according to an earlier report by the Unification Ministry.

I am unable to locate either the RFA story or the KOTRA report so I don’t have much to say on this.  If you have a link please send it to me.

Read the full story here:
N. Korea’s exports of mineral resources top US$860 mln last year
Yonhap
2011-5-7

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Posted in Coal, Energy, Iron Ore, Korea Trade-Investment Promotion Agency (KOTRA), Mining/Minerals, Statistics, Trade Statistics | Comments Closed

DPRK on high alert for radioactive damage from Japan

Wednesday, April 6th, 2011

UPDATE (4/6/2011): According to Yonahp:

North Korea’s official media reported on Tuesday that the country detected traces of radioactive materials in major cities following Japan’s nuclear crisis triggered by the March 11 earthquake and tsunami.

The North said in a report carried by the official Korean Central Broadcasting Station that traces of radioactive iodine and cesium were found in the cities of Pyongyang, Wonsan and Cheongjin, but the report did not disclose detection levels of such materials.

“Radioactivity monitoring stations in Pyongyang, Wonsan and Cheongjin have detected radioactive materials like iodine and cesium, which have not been seen in the past,” an official for North Korea’s meteorological research agency said in the TV report.

The traces were so small that they will not affect public health, the official said, adding that “close attention should be paid to monitoring and forecasting of weather changes.”

The news came as South Korea also reported air detection of radioactive materials after the massive earthquake and tsunami crippled nuclear reactors in Fukushima, sparking concerns of radioactive leaks.

ORIGINAL POST (2011-3-29): According to Yonhap:

North Korea is on high alert for any possible radioactive damage from an unfolding nuclear crisis in neighboring Japan, a senior North Korean scholar said Tuesday during talks with South Korea on a possible volcano in the communist state.

The comment was made by Yoo Yong-geun, head of a North Korean delegation who traveled earlier in the day to this South Korean border town of Munsan to discuss joint ways to respond if Mount Paekdu in the North is found to have an active volcanic core.

“We are actively watching, worrying that radioactive contamination may reach us” from Japan, where firefighters are struggling to contain radioactive leaks from a northeastern nuclear plant hit by a major earthquake and ensuing tsunami.

Yoon did not elaborate on what measures his government was taking to protect its population. Despite the direction of winds that normally blow from west to east, traces of radioactive material have been detected in South Korea, raising alarm here, according to a state nuclear safety agency on Tuesday.

“Due to the proximity, (events in Japan) seem to affect us,” Yoon told four South Korean scholars attending the first-ever inter-Korean volcano talks. Yoon, deputy head of a volcano research institute, added underground water fluctuated and mud seeped from spring water following the 9.0-magnitude earthquake off Japan’s east coast.

Read the full story here:
N. Korea on high alert for radioactive damage from Japan: scholar
Yonhap
Sam Kim
3/29/2011

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Posted in Finance, Fiscal & monetary policy, Japan, Nuclear | 3 Comments »

Transforming the DPRK through Energy Sector Development

Sunday, March 6th, 2011

A new paper by David von Hippel, Scott Bruce, Peter Hayes is up at 38 North.  Here is the conclusion:

North Korea has demanded the inclusion of energy aid and development assistance in every agreement covering its nuclear weapons program because it cannot develop into a “strong and prosperous nation” without such help from the international community. The country’s energy infrastructure is decrepit, and until it is redeveloped, the country will remain stuck in survival mode. Energy imports from China keep the North afl oat while it sells its minerals assets for hard currency. Until the DPRK earns enough foreign exchange to diversify imports and to refurbish its refi neries, it has no alternative but to rely on China. This situation means that the United States and its partners must prepare to engage the North on energy issues to prevent confl ict, avoid the collapse of the North Korean regime, build transparency and gather real data on the DPRK economy, and develop communication channels with North Korea. Without convincing the DPRK that it can overcome its energy insecurity and achieve a sustainable energy economy, it is unlikely that Pyongyang will shift away from an economy that emphasizes exports of military hardware and illicit goods, cease its provocative behaviors, and take steps to assume productive relationships with the global community.

The DPRK’s small LWR and uranium enrichment programs present an additional challenge, but if managed correctly, are an opportunity for engagement on energy issues. Moreover, the immediate demonstration of good faith on both sides will be necessary to proceed with denuclearization. Since big ticket energy infrastructure projects will take some time to deliver, non-nuclear fast fuels and technical assistance will be more useful in the short-term. There are a number of options for energy sector engagement available, ranging from capacity-building in science, technology, law, and economics to assistance with implementation of energy effi ciency and renewable energy measures and refurbishing/replacing major energy infrastructure to connecting the DPRK with big regional energy grids. Though engagement should start small, it should also start soon in order to open doors, establish relationships, and create a foundation for the peaceful economic growth in the North necessary to sustain a thaw in the DPRK’s relations with the United States, its allies, and the international community.

You can read the full piece at 38 North here (PDF).

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Posted in Coal, Dams/hydro, Electricity, Energy, Natural Gas, Nuclear | Comments Closed

Some interesting things…

Monday, February 28th, 2011

On January 18th, 2011, Kim Jong-il visited the “technologically updated” January 18 General Machinery Plant (1월18일기계종합공장, pictured above on Google Earth).  Usually when dates are incorporated into facility names they are public holidays (April 25th House of Culture–4.25 is KPA founding day) or the day Kim Il-sung visited the facility. Since I cannot find a North Korean Holiday on 1.18, I assume this is the day Kim Il-sung first visited the facility.

According to KCNA:

General Secretary Kim Jong Il gave field guidance to the technologically updated January 18 General Machinery Plant.

He went round the inside and outside of the plant to learn in detail about its technological updating and production there.

The workers of the plant have finished the work for its modernization and scientification based on the latest technology by their own efforts and wisdom and energetically developed new technologies to bring about a radical change in production.

Leader Kim Jong Il expressed great satisfaction over this success, watching the production processes equipped with home-made CNC-based machines and new machinery.

The plant has undergone radical changes to meet the need of the knowledge-based economy era thanks to the brisk mass technical innovation movement conducted by its officials, workers and technicians true to the Party’s policy of attaching importance to science and technology, he said, adding: This signal advance is a display of the great mental power of the heroic Korean workers who have always won victories through progress and innovation.

He also made the rounds of newly-built canteen and other cultural and welfare facilities for the workers to acquaint himself with the cultural life and supply service at the plant.

Seeing neat and clean dining room, kitchen, bean store and processing room, he noted that the plant has made signal changes in the supply service in a few years through its careful arrangement and redoubled efforts with the proper viewpoint on the workers. And he expressed great satisfaction over the provision of good living conditions to the workers.

The plant has an important role to play in the development of the nation’s machine building industry, he said, advancing the tasks for it.

Its most important task is to keep the production of machinery going at a high rate and produce more new-type efficient machinery, he said. He set the goal for the plant to hit in the near future and indicated orientation and ways to do it.

The officials of the plant should energetically guide the masses as the supporter and implementer of the Party’s policies and the fighter standing in the van of the drive to devotedly carry out the tasks set forth by the Party, he urged.

He expressed great expectation and conviction that the workers of the plant would creditably perform their role as the vanguard and shock brigade in implementing the WPK’s economic policy.

This factory goes by several similar names, but NTI reports:

According to a source in the South Korean military, this factory produces Scud missile engines. Han Tŏk Su, former chairman of the pro-North Korean General Federation of Korean Residents in Japan (Choch’ongnyŏn), reportedly visited the January 18th Machine Factory in April 1987. His guide told him the facility had been built under an apartment complex, and that very few people living in Kaech’ŏn knew about the factory. Han was also told that the factory mainly produced missiles, tanks and motors. According to the South Korean Ministry of Unification, this factory produces rocket engines.

This was Kim’s second official visit to the factory. The first was on June 10, 1998.

And…

On January 3, 2011, North Korean television broadcast from the Pongchang District Coal Mine (봉창지구탄광).  This is interesting because the mine is located inside Kwan-li-so 18.  Pictured above is the perimeter of the facility identified in The Hidden Gulag.  I posted the relevant television footage to YouTube here which you can use to match up with Google Earth satellite imagery if you wish.  The DPRK might like to give the impression that it is an ordinary coal mine, but most of their other mines do not have security perimeters.

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Posted in Coal, Energy, Google Earth, Military, Mining/Minerals, Political economy, Uncategorized | Comments Closed

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