China will no long approve coal mine projects in its eastern region in the 13th Five-Year Plan period (2016-2020), in a move to curb overcapacity and combat falling prices, said a senior official with the China National Coal Association (CNCA).<br /> <br /> In central and northeastern areas, the government will give nod only to new projects that would replace existing ones and those with resources exhausted, Wang Xianzheng, director of the CNCA, said at an industry meeting held in Beijing on January 29.<br /> <br /> In the west, integrated coal-power projects and power outbound transmission projects will be permitted for construction, said Wang, adding mines with capacity below 1.2 million tonnes per annum will be strictly controlled.<br /> <br /> These policies were first proposed by the National Energy Administration in a guideline issued late last October.<br /> <br /> China’s domestic market will continue to face a supply glut in the short term, due to excess production capacity, while consumption is approaching to its peak, Wang said.<br /> <br /> Presently, there’s a total of 4 billion tonnes of coal capacity across the country, with more than 1 billion tonnes under construction and some mines illegally built, he noted.<br /> <br /> China’s total coal production in 2014 fell about 2.5% from the previous year, the first year-on-year drop since 2000, the association said on January 23.<br /> <br /> Coal consumption may peak at 4.5-4.8 billion tonnes in the next 15-20 years, according to forecasts of multiple government research institutions, Wang said.<br /> <br /> Coal will still account for a large share in China’s energy mix in the foreseeable future, he said, noting difficulties in the expansion of clean and renewable energy sources.<br /> <br /> "Presently, hydropower capacity has reached 70% of the economically viable capacity, further large-scale expansion is getting hard; wind power is facing issues like technology and economy; while cost and safety concerns continue constraining solar and nuclear development," Wang said.<br /> <br /> According to the government’s energy plan, the share of coal in primary energy consumption will still be around 62% by 2020, even if the total coal consumption is controlled at 4.2 billion tonnes, and down to 55% by 2030 should coal consumption hit 4.5-4.8 billion tonnes.<br /> <br /> China has planned to increase the share of non-fossil fuel to 15% in energy mix by 2020. To do so, Wang said the country needs to increase 12 GW hydropower capacity and 6.5 GW nuclear capacity each year in the next five years.<br /> <br /> <p> "Apparently, this would not be easy to achieve," he said. "We should have confidence in coal’s dominant position."&nbsp; </p> <p> <br /> </p> <div style="text-align:center;white-space:nowrap;"> <img src="/upfiles/news/image/20150131/20150131094239_4705.jpg" alt="" /><br /> </div>