Released March 16, 2022 | YICHANG, CHINA
en
Researched by Industrial Info Resources (Sugar Land, Texas)--The Chinese government will take measures to increase its annual coal production capacity by 300 million tons, through upgrades and reopenings of existing mines. It also will build up a 620 million-ton coal stockpile to be split between the government, miners and users, the National Development and Reform Commission (NDRC) disclosed last week during a national energy meeting aimed at securing its energy supply.
The production increase would be split, with 150 million tons of capacity coming from upgrades of existing operations, and 150 million tons from open-pit mines and some mines that had previously been shuttered or placed on hold, according to the nation's top economic planner. Daily output would be maintained at about 12.6 million tons, equal to the record-breaking level reached in February 2022, after shortages caused widespread industrial brownouts since last fall. Daily production would include 3.9 million tons from Inner Mongolia, 3.6 million tons from Shanxi, 1.9 million tons from Shaanxi and the rest from other regions.
Industrial Info is tracking more than 2,000 bituminous coal and lignite mining projects in China, worth more than US$145 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a list of detailed project reports.
Click on the image at right for a chart showing China's coal mining project spending by the top 10 provinces.
For the 620 million tons of stockpiles, the national government would contribute 70 million tons, local governments 150 million tons, power plants 200 million tons, coal mines 100 million tons (equivalent to seven days' output), and other large users 100 million tons.
The NDRC also announced five measures to secure the power supply: accelerate the construction of large-scale wind and solar projects with the third batch, in a massive build-out of desert solar and wind projects to be announced shortly; accelerate the commissioning of coal-fired power with a combination of wind, solar and energy storage; accelerate the development cross-regional power transmission, with 17 projects to kick off this year; accelerate the construction of pumped-storage hydropower stations by easing the approval procedures at the provincial level; as well as other peak-shaving and backup power-supply projects.
China is the largest coal producer in the world. In 2021, its coal output reached a record 4.13 billion tons, an increase of 5.7% year over year. Since the coal industry reform carried out on the supply side in 2016, and especially since the announcing of its objective to peak emissions across the economy by 2030, China has tightened the control over coal production capacity. By the end of November 2021, it has shut down 980 million tons of production capacity in its coal industry.
Despite of the rapid growth in renewable energy, China's power system still highly relies on coal for about 60% of its needs. To guarantee the smooth operations of its power system, especially the long-lasting contradiction between market-based coal prices and government-guided electricity prices, the government has ordered mines and power plants to sign medium and long-term contracts for 100% of their generation, and will enforce a price range of between 570 and 770 yuan per ton (US$89 to US$121 per ton) for those supplies, which is about 10% to 40% lower than the market price at present.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: LinkedIn.
The production increase would be split, with 150 million tons of capacity coming from upgrades of existing operations, and 150 million tons from open-pit mines and some mines that had previously been shuttered or placed on hold, according to the nation's top economic planner. Daily output would be maintained at about 12.6 million tons, equal to the record-breaking level reached in February 2022, after shortages caused widespread industrial brownouts since last fall. Daily production would include 3.9 million tons from Inner Mongolia, 3.6 million tons from Shanxi, 1.9 million tons from Shaanxi and the rest from other regions.
Industrial Info is tracking more than 2,000 bituminous coal and lignite mining projects in China, worth more than US$145 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a list of detailed project reports.
For the 620 million tons of stockpiles, the national government would contribute 70 million tons, local governments 150 million tons, power plants 200 million tons, coal mines 100 million tons (equivalent to seven days' output), and other large users 100 million tons.
The NDRC also announced five measures to secure the power supply: accelerate the construction of large-scale wind and solar projects with the third batch, in a massive build-out of desert solar and wind projects to be announced shortly; accelerate the commissioning of coal-fired power with a combination of wind, solar and energy storage; accelerate the development cross-regional power transmission, with 17 projects to kick off this year; accelerate the construction of pumped-storage hydropower stations by easing the approval procedures at the provincial level; as well as other peak-shaving and backup power-supply projects.
China is the largest coal producer in the world. In 2021, its coal output reached a record 4.13 billion tons, an increase of 5.7% year over year. Since the coal industry reform carried out on the supply side in 2016, and especially since the announcing of its objective to peak emissions across the economy by 2030, China has tightened the control over coal production capacity. By the end of November 2021, it has shut down 980 million tons of production capacity in its coal industry.
Despite of the rapid growth in renewable energy, China's power system still highly relies on coal for about 60% of its needs. To guarantee the smooth operations of its power system, especially the long-lasting contradiction between market-based coal prices and government-guided electricity prices, the government has ordered mines and power plants to sign medium and long-term contracts for 100% of their generation, and will enforce a price range of between 570 and 770 yuan per ton (US$89 to US$121 per ton) for those supplies, which is about 10% to 40% lower than the market price at present.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: LinkedIn.
