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China to cap coal output at 4.1 billion tpy by 2025

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World Coal,

China's coal output will stand at no higher than 4.1 billion tpy by the end of the 14th 5-year plan period (2021-2025), after it climbed 1.4% y/y to 3.9 billion r in 2020, said a report issued by the China National Coal Association on 3 March 2021.


The number of coal mines will shrink to approximately 4000 by the end of 2025 from about 4700 at the end of 2020, and of the total, more than 1000 will be equipped with smart mining technology, the report said.

Annual coal consumption will be kept to around 4.2 billion tpy at the end of 2025, it said.

The report revealed that mergers and acquisitions will be encouraged amid efforts to eliminate backward coal production capacity in the next 5 years, and 10 super large coal enterprises will be established each with an output of 100 million tpy.

The coal sector has been tackling overcapacity in the past 5 years. By the end of last year, approximately 5500 coal mines had been closed and approximately 1 billion tpy of coal output capacity had been eliminated, the report said.

On the other hand, China has built some 1200 large and modern coal mines, each with an output capacity above 1.2 million tpy, which contribute around 80% of the country's total coal output, the report said.

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China coal news