Coal Mining in China
- Description: China is the largest producer and consumer of coal in the world, and many of China’s large coal reserves have yet to be developed. According to the 2008 BP Statistical Energy Survey, China had end 200
China is the largest producer and consumer of coal in the world, and many of China’s large coal reserves have yet to be developed. According to the 2008 BP Statistical Energy Survey, China had end 2007 coal reserves of 114500 million tonnes, 13.51% of the world total. In 2007 China achieved coal production of 2536.7 million tonnes and consumed 1311.4 million tonnes oil equivalent.
Northern China, especially Shanxi Province, contains most of China's easily accessible coal and virtually all of the large state-owned mines.
In February 2006, the National Development and Reform Commission (NDRC) revealed a plan to restructure China’s coal sector and reduce fragmentation in the industry. Their goal is to establish five to six giant conglomerates in China’s main coal-producing provinces and to close down all small coal mines by 2015. According to an industry report, China had 28,000 coal mines at the end of 2005, of which 2,000 were state-owned.
China is becoming increasingly more open to foreign investment in the coal sector. The China National Coal Import and Export Corporation is the primary Chinese partner for foreign investors in the coal sector.
The China Coal Import and Export Group, which distributes more than 80 percent of the total export volume, is the major coal export channel of China. The company plans to export 30.35 million tons of coal per year.
The Chinese government is actively promoting the development of a large coal-to-liquids industry.
The Pingshuo Coal Industry Corporation is the largest state owned opencast coal miner and is also the China's largest exporter of coal. The Pingshuo facility, located north of the Nigwi Coal field contains three mining operations; the An Tai Bao, Jia Ling Mine and East mine that collectively have a production capacity of some 45 - 50 Mt of coal.
Another major Chinese producer is the Shenhua Group Corporation Ltd, who has extensive good quality coal reserves (low ash/sulphur/phosphorus content and medium/high calorific value) located within the Shenfu Dongsheng Coalfield situated in the Yulin Prefecture of Shaanxi Province and Yike league of Inner Mongolia. Proven reserves have been estimated at 224 billion tons. Shenhua recently embarked on a massive development to construct and develop a 60Mt per year mining facility as well as associated rail and port handling infrastructure which saw its completion in 2005. Shenhua Group is China's largest coal producer, with the second-largest being the China National Coal Group