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Coal|Energy|Mining|Safety|SECURITY|Operations
Coal|Energy|Mining|Safety|SECURITY|Operations
coal|energy|mining|safety|security|operations

China to keep tapping coal to meet its energy security needs

9th January 2025

By: Bloomberg

  

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Cheap coal will continue to provide the ballast for China’s energy security in the coming year, according to the country’s top industry grouping.

Output is likely to rise 1.5% in 2025 for a ninth consecutive annual increase, while demand should expand 1%, the China Coal Transportation and Distribution Association said at a briefing on Wednesday.

Persistently high stockpiles should keep the fuel relatively inexpensive, although overseas purchases may moderate from this year’s record level.

China has expanded mining capacity so that supply runs ahead of demand, and a repeat of the crippling shortages that struck the economy earlier this decade can be avoided. That’s taken its toll on the industry in terms of accidents, which has affected production in some areas.

The top producing province of Shanxi should see output bounce back in 2025 after safety inspections hampered operations last year, said CCTD analyst Feng Huaming. Other coal hubs, including Helongjiang, Xinjiang, Guizhou and Ningxia, are also likely to raise supply to counter shrinking tax revenues from the crisis-wracked property market, he said.

The extra supply could shave imports, although producers that rely on Chinese demand in countries like Mongolia and Russia are likely to try and maximize their sales, he said.

Edited by Bloomberg

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