https://www.miningweekly.com

China signals coal reliance to continue with three new mines

21st February 2022

By: Bloomberg

  

Font size: - +

China’s top planning agency approved three different billion-dollar coal mine projects on Monday as the country continues to support the fuel that much of the rest of the world is shunning.

The National Development and Reform Commission gave the go ahead to two mines in the northwestern province of Shaanxi and another in Inner Mongolia. The three projects will require a total investment of 24.1-billion yuan ($3.8-billion) and produce 19-million tons of coal a year.

The approvals follow a massive surge in mine activity late last year as China boosted production to record levels after fears of an energy shortage sent prices skyrocketing. Each of the projects plans to rely on bank financing for about 70% of the capital involved, a sharp difference from most of the rest of the world where lenders have promised to stop funding new coal mines.

China has ambitious long-term climate goals and world-leading renewable energy industries, but its leaders have placed top priority on energy security and have vowed to continue supporting coal, which still generates about 60% of the country’s electricity. While benchmark coal futures in the country have fallen by more than half from an all-time peak in October, they’re still 40% higher than they were a year ago.

 

Edited by Bloomberg

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

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