China's coal output grew 28.1 percent year on year to well over 751 million tonnes in the first quarter, the National Bureau of Statistics (NBS) said Thursday.

The increase indicates China has built up a large coal production capacity after a rapid growth in fixed asset investment for coal, according to an analysis by the China National Coal Association (CNCA).

The report estimates China's total coal production capacity has exceeded 3.6 billion tonnes.

Mergers and acquisitions in coal-rich areas such as Shanxi Province, Henan Province and Inner Mongolia Autonomous Region are expected to create large coal mine groups and further raise the nation's coal production, the report said.