BEIJING (Businesshala) – China’s October coal output rose to its highest since at least March 2015, when Beijing approved a coal mine expansion to slash record prices and boost supplies.
The world’s largest producer and consumer of the dirty fossil fuel churned out 357.09 million tonnes of coal last month, up from 334.1 million tonnes in September, data from the National Bureau of Statistics showed on Monday.
Production in the first 10 months of 2021 stood at 3.3 billion tonnes, up 4% year-on-year.
Since July, China has approved expansion in more than 153 coal mines, which could add 55 million tonnes of coal production in the fourth quarter, the National Development and Reform Commission (NDRC) said last month.
The central government, in an effort to end power shortages, has also prohibited local governments from shutting down coal mines without permission and urged them to restart closed mines as soon as any problems are corrected.
The escalation comes as India, backed by China and other coal-dependent developing countries, called for last-minute amendments to the COP26 climate talks in Glasgow over the weekend to change the final words of the agreement to “phased out” rather than “phased out”. Brokerage done. “The use of coal.
President Xi Jinping said earlier this year that China would start cutting back on its use of coal from 2026. Thermal coal currently provides about 60% of the country’s electricity needs,
China’s top planning body said last Thursday that daily coal production had hit a record high of 12.05 million tonnes, after a drop of more than 1 million tonnes in the aftermath of a cold snap a week earlier.
Because of intervention measures initiated by Beijing, spot thermal coal prices at northern ports have fallen to about half their level a month ago at about 1,000 yuan ($156.70) a tonne.
The most-traded Zhengzhou thermal coal futures contract fell 6.1% to 819.4 yuan per tonne in early morning trade on Monday.
However, traders and analysts are still wary of domestic coal supplies in the coming winter, when inclement weather typically halts operations at open-pit mines and disrupts logistics.
($1 = 6.3817 yuan)