Coal strengthens the integration of coal circuit and port

In the year 2012, the issue of excess coal supply became increasingly evident. Following a production restriction order issued by relevant authorities in September, the growth rate of raw coal output saw a steady rise in the fourth quarter. By the end of the year, China’s total raw coal production reached 3.85 billion tons, setting a new record high. This marked an increase of 340 million tons compared to the previous year, reflecting a 9.64% year-on-year growth. The quarterly breakdown showed 860 million tons in Q1, 1.09 billion in Q2, 1.01 billion in Q3, and 890 million in Q4. On February 4, the National Development and Reform Commission and the Energy Bureau jointly released the "Coal Industry Policy" (Revised Draft) for public consultation. One of the key aspects of the revised draft is the establishment of differentiated access standards based on regional conditions. This move aims to promote more efficient and sustainable development within the industry. Industry experts believe that this policy will further drive the integration and restructuring of coal enterprises, leading to higher industrial concentration. Enhancing access requirements for coal companies can help ensure more rational and effective resource utilization. Only firms with stronger qualifications are likely to maximize coal extraction while minimizing waste. According to industry sources, coal remains a cornerstone of China's energy system, accounting for nearly 70% of primary energy consumption. Despite this, some production capacity continues to be gradually released, which poses challenges for the stable development of the coal sector. In the current economic climate, the industry must proactively adjust its structure, shift towards more sustainable development models, and maintain stability while progressing. This includes organizing production according to market demand, strictly managing production capacity, and ensuring a stable supply. In terms of industrial layout, the revised draft emphasizes controlling the intensity of coal exploitation in the eastern region, stabilizing coal production in the central region, and strengthening exploration and development in the western region. It also encourages large existing coal enterprises to lead the way, breaking down regional, industry, and ownership barriers. By leveraging resources and assets as links, these companies can merge with smaller mines to form larger coal enterprise groups. Additionally, the policy promotes the development of large-scale, globally competitive coal enterprises that integrate operations such as coal, electricity, railways, and ports. It also encourages major coal companies to participate in joint ventures with power, metallurgy, chemical, construction, and transportation industries, fostering greater synergy across sectors.

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