China will not approve new coalmine projects with an annual
capacity of less than 300,000 tons before 2010, according to the
nation's top economic planning body.
A newly published national coal industry policy by the National
Development and Reform Commission (NDRC) said that in coal-abundant
provinces such as Shanxi, Shaanxi and the Inner Mongolia Autonomous
Region, proposed coalmines will need a production capacity of over
1.2 million tons for approval.
Besides raising entry requirements for coal and coalbed methane
exploration and exploitation, industry consolidation, coalmine
safety, technology improvement, energy-saving and environmental
protection are also underlined in the coal blueprint.
A total of 13 large coal producing bases will be built in the
country.
Large-scale State-owned coal companies are encouraged to expand
operations by tapping into different regions and various
industries. Mergers and acquisitions are also encouraged in the
sector.
"With the new policy, the nation will use its coal resources
more efficiently, and the coal industry will see more
consolidations," Liang Dunshi, vice-chairman of the China Coal
Transport and Distribution Association, said.
The NDRC in January released the outline of the 11th Five-Year
Plan (2006-10) for the coal industry, saying the nation would
develop up to eight coal-mining groups, each with an output of 100
million tons, and up to ten companies, each with an output of 50
million tons.
At present two companies in the country, Shenhua and China Coal,
have an annual output of over 100 million tons.
"China's coal industry should also pay more attention to energy
efficiency and environmental protection for sustainable
development," Liang said.
By 2010, Chinese coal firms should have cut their energy
consumption per ton by 20 percent from the level in 2005, the NDRC
said.
Solid waste such as coal gangue and flurry, should be used in 70
percent of electricity production, up from 43 percent in 2005, it
said.
China's coal output is expected to reach 2.6 billion tons this
year, an increase of 8 percent compared with last year, Liang said.
In 2006 the country produced 2.38 billion tons of coal.
This year the country's coal exports will match import totals,
both standing at about 50 million tons, he said.
(China Daily November 30, 2007)
