Daily NK has learned that North Korea has begun importing equipment needed to restart coal production and export. The developments suggest that business managers in the North are anticipating sanctions relief to follow planned meetings in April and May between Kim Jong Un and the US and South Korean presidents.
“Trading companies working under the Party such as the ‘Joseon Kumgang General Trading Company’ are importing mechanical belts in large numbers in preparation for the resumption of production at coal mines,” a source in China told Daily NK on March 14. “They think that there may be sanctions relief if the US-North Korea summit is a success, so they are preparing for it.”
“The ‘Kumgang General Trading Company,’ operating under the Party’s accounting division, has received special permission to operate with the same authority as the more powerful military-affiliated companies, meaning they are one of the first to receive and carry out Kim Jong Un’s directives,” he added.
North Korean residents have responded with optimism over improved North-South relations after state newspaper Rodong Sinmun covered the March 5 meeting in Pyongyang between Kim Jong Un and a South Korean high-level special envoy.
But further news of the planned April meeting between Kim and South Korean President Moon Jae In at Panmunjom (within the North-South Joint Security Area) or the potential May meeting between Kim and US President Donald Trump has not yet been officially announced through state media.
While ordinary residents may not yet be aware of the planned meetings, renewed activity related to coal production by these trading companies suggests that well-connected individuals in the industry are aware of the news. This is likely a result of powerful party leaders conveying the information to the companies with directions to restart foreign currency-earning operations.
“The ‘Joseon Kumgang General Trading Company’ is preparing to restart coal exports not on their own volition but because of directions handed down from government,” a separate source in China close to North Korean affairs said. “It looks like the North Korean government intends to have their companies ready to start business the moment relations with the US improve.”
He added that other “weaker” state trading companies do not appear to be active as they have not yet received any official instructions from the government. “But individuals in powerful companies such as the ‘Joseon Kumgang General Trading Company’ are granted access to more privileged information both from inside North Korea and the outside world,” he explained.
Both sources witnessed the shipments of thousands of meters of mechanical belts and hundreds of miner helmets and headlamps entering North Korea through customs at the Dandong-Sinuiju border crossing, as these companies prepare to restart coal and mineral mining operations.
“There have been instances in the past of these shipments being stopped by Chinese customs due to restrictions over the potential for such mechanical belts to be used for military purposes,” the first source said.
“But while we know of a ship stopped for this reason in February, it appears that Chinese customs are no longer enforcing the measure.”
