(Recasts with details from Asia, analyst)
European and Asian coal importers are expected to join the scramble for alternative sources of the fuel as a European Union ban imports on Russian coal looms, analysts and company officials said.
But with top exporters Australia and Indonesia having already hit production limits and major producer South Africa constrained by logistical problems, some importers may struggle to maintain supply levels, and the rush is expected to keep global coal prices elevated.
The EU ban is expected to take effect from mid-August, a month later than initially planned, according to two EU sources, following pressure from Germany to delay the measure.
But in top-10 coal producer South Africa, Exxaro Resources EXXJ.J told Reuters it had already received numerous requests from European countries wanting to sign supply contracts.
It said it has the right quality of coal for the European market, but that current production has already been allocated, and South Africa's struggling rail network means miners will not be able to export more to meet the increased demand.
"South African coal producers are able to produce more coal, but significant work will need to be done to improve logistics in order to ramp up coal supply for export," Exxaro said.
State-owned rail company Transnet's capacity to haul mineral exports has been limited by cable theft and vandalism.
German energy company Uniper has said it had taken steps to ensure its coal-fired power plants in Europe can be technically operated without Russian coal and had decided not to extend its Russian supply contracts.
Toby Hassall, a lead analyst with Refinitiv, said most EU buyers' contracts for Russian coal would be for a year or less.
'VERY LIMITED SPARE CAPACITY' Coronado Global Resources (CRN) , with metallurgical coal operations in the Australia and the United States, said it has received queries for coal in recent weeks from Europe.
It expected to be able to meet some of that new demand, but said volume, destination and timeframes were confidential. Coronado expects to produce between 18-19 million tonnes in 2022.
"We have plans for growth in future years beyond this," a spokesperson said in emailed comments, without elaborating.
"It will be very challenging for OECD nations to replace their coal imports from Russia," CBA analyst Vivek Dhar said in a note.
"There is simply very limited spare capacity in thermal and coking coal markets."
In Asia, at least two utilities in Japan and South Korea have halted Russian coal imports and others may have to follow suit if sanctions are expanded.
Japan's Kyushu Electric Power Co Inc 9508.T had already stopped buying Russian coal as of end-March, a company spokesperson said.
The company bought 7% of its thermal coal from Russia in the year to March of last year and is procuring alternative supplies from other regions, he added, without specifying where.
"We have no plan to buy Russian coal this financial year, either," he said.
In South Korea, at least one unit of state utility Korea Electric Power Corp (KEPCO) began diversifying coal imports away from Russia in February, a source with knowledge of the matter said.
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