Run by Xinhua News Agency/ China Finance Corporation (CFC)
Home  >  English  >  Industries  >  Coal production expansion of China's Shanxi province likely to end, experts

Coal production expansion of China's Shanxi province likely to end, experts

2015-05-28 GMT+8:00

BEIJING, May 27 (Xinhua) -- North China's Shanxi province produced 73.185 million metric tons (tonnes) of coal in April, down 3.5 percent year on year and it yielded 278 million tonnes of coal in the first four months, down 4.5 percent year on year, according to the Shanxi Provincial Bureau of Statistics.

Experts believed that the figures meant an end of expansion period for coal production in Shanxi province.

In the first decade of this century, the annual growth rate of coal production in Shanxi province was about 12 percent on average. However, its coal production growth was only 4.7 percent and 5.4 percent in 2012 and 2013, respectively. In 2014, the growth was only 1.5 percent.

The sluggish demand on the domestic market caped the province's coal expansion. Moreover, the large-scale coal development in Inner Mongolia Autonomous Region and Shaanxi province has led to an oversupply in coal market in recent years, said experts.

Meanwhile, Shanxi government has also strictly controlled the growth of coal production in recent years in the hope of shaking off the economic mode of relying heavily on coal resources.

The Shanxi provincial government decided in February this year not to allocate new coal resources in principal before 2020. It will not approve new coal mine projects and stop approving projects of transforming underground mining to opencast working coal with annual capacity below 5 million tonnes.

Under such circumstances, coal output in Shanxi province will fall in 2015 and the province's coal industry will embrace a low growth, even negative growth in the future, said experts. (Edited by Hu Pingchao,