Chain’s government is ordering coal miners to increase their output in response to power cuts that have left millions of households without electricity. Coal miners are being encoauraged by the government to produce more coal and sell it at a lower price, which will help alleviate some of the country’s power shortage crisis.
Beijing will allow 10% of power consuming enterprises, with combined capacity of 74 million kilowatts to cut down the amount of electricity they use during peak hours. The reduction will be allowed at night and on weekends, when the need for electricity is low.
The Chinese government has repeatedly attacked its coal industry in recent months, with officials from the country’s powerful National Development and Reform Commission NDRC repeatedly criticizing China’s coal miners.
China announced that it hopes to boost exports of high-quality, low-priced fuels such as liquefied natural gas LNG and methanol while discouraging exports of steel and non-ferrous metals. The NDRC has also urged coal producers to convert part of their stocks into higher value products for export.
The Chinese government is planning to limit steel production by 100 million tonnes in 2016, while canceling new projects that are not yet under construction.
According to some estimates, China’s stockpiles of coal totaled 4 billion tonnes at the end of October, which is almost enough to last the whole year.
China’s current stockpiles could potentially cover the country’s coal demand in winter and production cuts won’t affect heating supplies in northern China because it will be too cold for people to open windows and let out their heating.
According to official figures, China has at least 1,000 huge coal mines that have a total production capacity of 600 million tonnes per annum.
However, China has been experiencing a growing phenomenon known as coal mine tourism” in which thousands of people from across the country flock to coal mines to see an industry that is struggling to survive.
The Chinese government expects coal demand to continue falling until 2020 and has announced its intention to reduce the number of coal mines by between 500 and 700.
China’s economic planners have said that they hope to move more of the country’s industrial production away from coal in order to develop its service sector.