China to build more coal mines to feed surging power capacity
China will build more coal mines in its push for higher domestic supply and to tame price increases, according to the National Development and Reform Commission.
The world’s biggest coal producer and consumer set targets to add about 300 million tons of annual mining capacity for “emergency storage reserves” by 2030, the top economic planner said in a policy paper released Friday. Qualified miners — preferably in the top hubs of Shanxi, Inner Mongolia, Shaanxi and Xinjiang — will be encouraged to set aside as much as 30% of the new capacity as a backup to limit price spikes, it said.
China has led a global resurgence in coal-power capacity, accounting for about two-thirds of last year’s increase, according to Global Energy Monitor. The world’s second-biggest economy is also mining a record volume of the dirtiest fossil fuel, following a three-year capacity expansion program to ensure energy security and avoid price spikes such as the one after Russia’s invasion of Ukraine.
As a result of the new capacity, domestic spot thermal coal prices have almost halved from their peak in October 2022, to 810 yuan ($112) a ton as of Monday. The government-set benchmark long-term contracted price is around 700 yuan a ton for this year, which is seen as a floor price.
Comments
Research Reports
Latest Multimedia
Latest News
Showroom
For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...
VISIT SHOWROOM
Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
