China ramped up its daily coal production to a new high of 11.93 million tonnes as part of the ongoing efforts to resolve the energy crisis in the country, the National Development and Reform Commission (NDRC) of China said on Monday.
“Since October this year, coal mining has continued to grow. From November 1-5, the average daily coal production reached 11.66 million tonnes, which is 1.2 million tonnes more than at the end of September. A peak of 11.93 million tonnes was reached, which has become a record high in recent years,” the commission said in a statement.
Following a gradual improvement in the supply situation, coal stockpiles at power plants have also started to increase. In addition, coal supplies to power plants across the country currently exceed consumption. Since the beginning of November, the average daily volume of coal supplies has reached 7.74 million tonnes.
On November 6, the volume of coal stockpiles at power plants across the country reached 117 million tonnes, an increase of about 40 million tonnes compared to the end of September.
The country’s authorities expect that coal prices will continue to decline steadily, as its production and reserves have been increasing.
Several Chinese provinces, mainly those located in the country’s northeast, are facing disruptions in power and heating supply, amid coal deficit and surging prices of natural gas. This is happening as the country’s authorities are struggling to reduce carbon dioxide emissions, the use of coal, and boost the green economy.
In October, the NDRC urged mining and energy companies to sign new long-term contracts, in addition to existing agreements, to guarantee the supply of coal for power generation. As a result, the authorities of three Chinese coal hub provinces of Shanxi, Shaanxi and Inner Mongolia pledged to deliver 145 million tonnes of coal throughout the country in the fourth quarter at a reduced price.
