https://www.miningweekly.com
Coal|Energy|Mining|Paper|Power|SECURITY|Storage
Coal|Energy|Mining|Paper|Power|SECURITY|Storage
coal|energy|mining|paper|power|security|storage

China to build more coal mines to feed surging power capacity

12th April 2024

By: Bloomberg

  

Font size: - +

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.

Edited by Bloomberg

Comments

Showroom

Actom image
Actom

Your one-stop global energy-solution partner

VISIT SHOWROOM 
Avlock International
Avlock International

Avlock International is a leading manufacturer and distributor of Specialized Fastening Systems.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Resources Watch
Resources Watch
22nd May 2024

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.159 0.198s - 109pq - 3rq
1:
1: United States
Subscribe Now
2: United States
2: