Several ministry-level bodies of the central government recently
released a notice demanding an end to the blind expansion and
disordered development of the coke industry.
The notice was jointly released by the National Development and
Reform Commission (NDRC), Ministry of Finance, Ministry of Land
and Resources, Ministry
of Commerce; State Administration of Industry and Commerce;
State Administration of Environmental Protection, China Banking
Regulatory Commission and China Electricity Regulatory
Commission.
An NDRC official said that growth in the steel industry and
other sectors is causing coke demand and prices to rise sharply. In
response, producers are expanding capacity as quickly as they
can.
Coke is bituminous coal that has been carbonized, or heated to a
temperature of 1,300 degrees Celsius (2,400 degrees Fahrenheit) for
12 to 36 hours but not burned. It is a critical raw material for
making iron. However, the pollution generated by coke making is a
serious environmental hazard. The major sources of pollution are
gases and particulate matter escaping from doors and lids of
coke-making ovens, and air and water pollution from cooling the
product. The heating process consumes enormous amounts of fuel.
The notice calls for all heap coking, in which none of the
escaping gases are captured, to be stopped immediately. Punitive
action should be taken against enterprises that cannot meet
national standards for environmental protection and energy
conservation, and they should be required to correct deficiencies
within a specified period.
With the exception of projects related to large steel
enterprises and urban gas supply, all applications for new or
expanded coke production should be denied. Strict requirements
should be established for new market entries, while lending
controls and energy allocations should be used to promote
structural adjustment.
Management of the industry as a whole should be strengthened and
a comprehensive clean-up begun. Incentives should be provided for
technical innovations in environmental protection.
The export tax rebate for coke should be canceled and exports
standardized and gradually reduced. The existing coke export quota
system must be improved.
Finally, the notice calls on the industry to strengthen internal
regulation by providing guidance through information.
(China.org.cn by Tang Fuchun, July 9, 2004)