Daqin Railway Co., Ltd, operator of coal-dedicated Daqin rail line, denied possible impact of coal resource exhaustion on its business in the short run when being asked by an investor.
The company, relying on concentrated coal resource in top three provinces in North China, said coal supply from these main production areas would be further strengthened in the future.
China's coal resource is unevenly distributed, with coalfields with good mining conditions concentrated in Shanxi, Shaanxi, western Inner Mongolia and some parts of Xinjiang, according to the company.
Data from the National Bureau of Statistics showed China's coal reserve base was 249.2 billion tonnes as of 2016, with 186.3 billion tonnes or 74.74% distributed in Shanxi, Inner Mongolia, Shaanxi, Xinjiang and Guizhou.
In 2019, raw coal output from Shanxi, Shaanxi and Inner Mongolia accounted for 70.5% of China's total, up by 1.1 percentage points from a year ago.
So in the foreseeable future, there's little possibility for the company to be subject to resource exhaustion.
The firm's Daqin railway, stretching from Datong city of Shanxi province to coal pivot Qinhuangdao port, plays a significant role in connecting coal production bases in the North and consuming areas in the South.
With increasing concentration of coal resource to top three coal provinces, Daqin Railway will also further strengthen coal supply capacity from coal bases.
(Writing by Tammy Yang Editing by Jessie Jia)
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