Coal Output of Inner Mongolia Reaches 680 Million Metric Tons in First Eight Months of 2012, Up 11.5% Year-Over-Year

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Researched by Industrial Info Resources China (Beijing, China)--The coal output of Inner Mongolia reached 680 million metric tons (MMT) in the first eight months of 2012, an increase of 70.39 MMT, or 11.5% year-over-year. The coal output in August 2012 reached 79.5 MMT, a drop of 3.45 MMT, or 4% year-over-year; compared with the output in July 2012, the output dropped 4.47 MMT or 5.3%, according to a recent announcement from the Coal Industry Administration of Inner Mongolia Autonomous Region.

The coal output of central enterprises reached 277.64 MMT in the first eight months of 2012, an increase of 30.85 MMT, or 12.5% year-over-year. The output of China Shenhua Group in Inner Mongolia reached 160.85 MMT, up 12.6%. The output of local coal enterprises reached 403.02 MMT, an increase of 10.9%, accounting of 59.2% of the total coal output in Inner Mongolia.

In view of different regions, in the first eight months of 2012, the coal output of western Inner Mongolia reached 470.51 MMT, an increase of 11.7% year-over-year, accounting for 69.1% of the total coal output in the region; the coal output of eastern Inner Mongolia reached 210.15 MMT, an increase of 11.1% year-over-year, accounting for 30.9% of the total coal output in the region.

Due to weak demand, the coal price in Inner Mongolia experienced a sharp decline starting from the beginning of this year. Parts of large- and middle-sized coal enterprises have begun to shut down their mining operations starting in June 2012. According to the 2012 Annual Implementing Scheme for the 12th Five-Year (2011-2015) plan issued by the National Development and Reform Commission (NDRC) in August 2012, the expected coal output of Inner Mongolia, Shanxi and Shaanxi, the top three coal producers in China, has been reduced to 920 MMT, 810 MMT and 400 MMT, respectively, in 2012. All of these targeted outputs are lower than the actual output of 990 MMT, 870 MMT and 405 MMT in 2011.

From January to August 2012, China's coal output reached 2.57 billion metric tons, an increase of 4.4% year-over-year, according to the Instant Statistic Report of China Coal Industry Association.

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