Shanxi, China’s second-largest coal-producing province, has decided to permanently close more small coal mines under a three-year plan to improve efficiency and safety standards within the industry. The provincial government said that the program included closures of all mines with permitted output capacity below 600,000 tons/year by the end of 2020.
Smaller coal mines are typically inefficient and also lack safety protocols in place. It remains unclear how many mines with production capacity under 600,000 tons/year in the province. Shanxi also plans to cap the number of mines at 900 by the end of 2020, saying that it would help raise output from larger mines. Last year the province phased out 27.45 million tons/year of inefficient coal mining capacity while maintaining to increase output 6.1% year-on-year to 971.09 million tons.
Previously, China’s state planner the National Development and Reform Commission (NDRC) ordered coal mines with a capacity lower than 300,000 tons/year in Shanxi, Shaanxi, Inner Mongolia, and Ningxia regions to be closed by the end of 2019. The economic planning agency also banned granting permits for new mines with a capacity of under 600,000 tons/year in those provinces.
In 2019, China discovered a total of 9.05 billion tons of coal reserves across 79 locations. However, whether these are probable or proven reserves remain unspecified. It also remains unclear whether Chinese miners will develop the newly discovered resources, considering the government’s drive to close small mines and to increase the share of renewable-based power generation.
