Coal mining curbs reversed as winter approaches, concern about supply deepens
Source: www.chinamining.org Citation: Reuters Date: November 18, 2016
China adopted new rules on Thursday to stimulate coal production as it moved to counter surging prices and after Premier Li Keqiang said the country had to balance demand for heating with efforts to tackle pollution.
Li`s comments came after the National Development and Reform Commission (NDRC) ruled that all coal mines that abide by production safety rules can operate 330 days a year rather than 276 days previously.
Analysts and traders said the new limit marked a major step from the Chinese central government to help boost coal supplies. The NDRC capped domestic mining earlier this year in a campaign to reduce excess capacity but this triggered a surge in the price of coal.
Li told a meeting of the National Energy Commission that reports directly to the cabinet that China must increase the clean and efficient use of coal, according to state radio.
Higher coal prices have been hurting consumers in China and concerns about supply have growing ahead of expected strong demand during winter.
"This is the biggest policy adjustment to lift coal production so far," Huaan Futures coal analyst Wang Fei said.
The new limit will be effective until the end of the winter heating season, NDRC said.
The country faces uncertainty over the weather outlook in the northern regions, it said, which is contributing to coal supply difficulties.
Also, some producers have not ramped up production as fast as expected as winter approached, the State planner said.
About CHINA MINING
Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.
CHINA MINING Congress and Expo 2017 will be held at Meijiang Convention and Exhibition Center in Tianjin China in September23-25, 2017. We invite you to join the event and to celebrate the 19th anniversary of CHINA MINING with us. For more information about CHINA MINING 2017, please visit: m.balanzskin.com.
