China to Set Ceiling on Coal Output


"China is expected to have 3.6 billion tons of coal output capacity."

Wu Yin, deputy director of China National Energy Administration has recently suggested setting ceiling on coal output rather than producing as much as needed.

Authoritative sources participating in the coal industrial planning for the Twelfth Five-Year Program for 2011-2015 disclosed that China is expected to have 3.6 billion tons of coal output capacity under construction by the end of 2010, which is expected to be released during 2011-2013. Thus, controlling coal output capacity would be an initial target for coal industry during 2011-2015.

The 12th five-year program may set the annual coal output ranging from 3.6 billion tons to 3.8 billion tons.

In 2009, China's coal output exceeded 3 billion tons, accounting for 30% of global total. And it still continues growing while output of developed countries keeps decreasing.

Meanwhile China's coal industry is not highly concentrated and have great contradictions with the resources and environmental protection. Thus Chins will further promote the coal mergers and acquisitions of coal industry during the Twelfth Five-Year Program.

China's top ten coal companies only account for 20% of the total output of the country, posing a low concentration rate, as against 46% in the United States, 50% in Australia, and 60% in South Africa.

Wu Yin also suggested "going-out" strategy for China's coal enterprises based on their advanced coal exploration and convention technology.

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