China to allow more coal mines to boost output

sxcoal.com Policy 2016-09-30 15:43:00

China will allow more coal mines to boost production within 276-330 operating days, after 74 mines were given the green light to increase output, to ensure supply for winter heating and power generation, sources learned from the National Development and Reform Commission (NDRC).


Besides those identified by China National Coal Association as advanced capacity, coal mines listed as Level I safety mines in 2015 by the State Administration of Coal Mine Safety and those safe and high-efficiency mines recommended by local governments would be allowed to increase output, said official with the NDRC on September 29.


Moreover, due to such restrictions as coal varieties and distance to end users, some coal-producing provinces could select some mines meeting Level II safety standards in 2015 and include them into the category of accommodation, sources said.


Newly-built coal mines that would replace outdated ones would also be allowed to commence operation before the old ones are closed, which could be allowed to shut later than previously required, the NDRC said.


"Such mines (above) would be able to boost production within 276-330 operating days, but other mines must comply with the 276-workday strictly," one source told China Coal Resource (sxcoal.com).


The latest move was aimed at securing coal supply for heating, gas supply and power generation purpose the coming winter season and next spring, said the NDRC official.


This will be carried out temporarily from October 1 till the end of the year, and assessment will be made based on the market situation to decide when to call off it.


Major coal production bases in China were required to draw up specific schemes, and decide on the mines and their increases of production. The schemes are to be launched before the end of September.


Given the current market situation, coal firms may adopt flexible working hours during the National Day holidays (October 1-7) to ensure supply, after reporting to relevant local government authorities, the official said.


Data published by the State Administration of Coal Mine Safety showed that there were 791 coal mines meeting the Level I safety standard in 2015. So, it is expected that more than 900 coal mines could be allowed to produce within 276-330 operating days.


(Writing by Tammy Yang  Editing by Harry Huo)
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