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Planners to take a firmer hand on coal

(Shanghai Daily)
Updated: 2007-01-23 15:01

China will restrict its coal production to 2.6 billion tons in 2010 to maintain equilibrium with demand, the country's top industry planner said yesterday.

Last year, coal output was 2.33 billion tons against a demand of about 2.25 billion tons.

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Large-scale mines will be the favored suppliers for future demand, theNational Development and Reform Commissionsaid yesterday.

Power and steel companies will be the key sectors driving domestic demand over the next few years, along with the fledgling coal-chemical industry, the commission said in afive-year planning report.

"The key mission during the period is to control output, form big players, consolidate small and medium-sized suppliers and eliminate those with low recovery rates and potential dangers," the commission said.

Reaffirming that coal will remain the country's primary energy source, the commission said that China will add output of good-quality coal to help reduce pollution and boost its extraction technology.

"This could lead the domestic industry toward a more environmentally friendly future and contribute to a conservation-oriented society," the planners said.

The commission said it will speed efforts to crack down on small mines to curb overcapacity and improve work safety.

Small mines have played a large part in China's growing number of deaths and injuries over the past few years, experts said.

Some were built without permission or resumed operations after being closed for safety reasons.

The commission said it will allow no more than 700 million tons of coal to come from small mines in 2010. In 2005, the figure was 1.08 billion tons.

By 2010, China intends to form six to eight large-scale coal producers, each with annual capacity to produce more than 100 million tons.