China to crack down coal production beyond capacity and shut outdated capacity
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China will continue to crack down coal production beyond approved capacity and eliminate outdated capacity, according to two documents jointly released by the National Energy Administration and the State coal mine Safety on May 7.<br />
The Chinese government has been making efforts in curbing rampant growth in production to reverse deterioration in the oversupplied domestic market, as more than 70% of the coal mines suffered losses as prices of the fossil fuel fell to a nine-year low.<br />
Coal mines are prohibited to produce more coal than the production capacity approved by the government, and their monthly output should not exceed 110% of a mine’s production plan, the document said.<br />
"If no monthly plan is made, the mine’s monthly output should not surpass 1/12 of its approved capacity," it said, adding those failing to comply will be punished in accordance with relevant regulations issued by the State Council.<br />
Meanwhile, China has planned to eliminate 1,254 backward mine with combined capacity of 77.79 Mtpa in 2015.<br />
Of that, 1,052 mines will be shut, with combined capacity of 63.91 Mtpa; 202 mines will be reconstructed or upgraded, with combined capacity of 13.88 Mtpa.<br />
The most outdated capacity to be eliminated in 2015 will come from Guizhou – 21 Mtpa for 220 mines, followed by 12.7 Mtpa for 233 mines in Heilongjiang and 9 Mtpa for 150 mines in Hunan.<br />
All coal mines with annual capacity of less than 0.09 Mtpa are required to be phased out gradually, as small mines are more prone to accidents and lack proper safety facilities.<br />
For areas with appropriate conditions, it is encouraged to close coal mines with annual capacity of 0.09-0.3 Mtpa.
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