Output declines in China’s second-largest coal-producing region

China’s second-largest coal-producing region, Inner Mongolia, saw a 16.8-percent decline in coal output in the first four months of the year as it pushed forward supply-side reform.

The northern region churned out 250.9 million tonnes of raw coal in the Jan.-April period, Xinhua news agency quoted the coal mine safety department as saying.

Facing excess capacity, the region has been moving to slash coal production capacity. Major state-owned mines are the most affected as they slashed output by nearly one third to 192.5 million tonnes in the four months, Xinhua said.

Boosted by the sharp decline in output and a recovering economy, China’s coal prices have started to rise, ending a slump that has lasted for several years amid a slowing economy, the department said.

The rise in prices, however, triggered output increases of up to 374 percent at smaller state-owned mines.

Shanxi, the country’s largest coal-producing region, has also been rolling out measures to advance supply-side reform.

According to Xinhua, the Shanxi provincial government said earlier that it would stop approving new coal mining projects and slash coal production capacity by over 100 million tonnes in the years to 2020.

 

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