Coal strengthens the integration of coal circuit and port

In the article, it is highlighted that in 2012, the issue of excess coal supply became more evident. After the government issued a production restriction order in September, the growth rate of raw coal output accelerated significantly in the fourth quarter. The total raw coal output for the year reached 3.85 billion tons, setting a new record high. This marked an increase of 340 million tons compared to the previous year, representing a 9.64% growth. The quarterly figures showed 860 million tons in Q1, 1.09 billion tons in Q2, 1.01 billion tons in Q3, and 890 million tons 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 comments. The revised version introduced differentiated access standards based on regional conditions, aiming to improve industry efficiency and sustainability. Industry experts believe this policy will promote further integration and restructuring within the coal sector, leading to higher concentration and better resource management. By raising the entry barriers for coal companies, the policy ensures that only those with greater capabilities can effectively exploit coal resources, reducing waste and improving overall efficiency. As a fundamental energy source, coal accounts for nearly 70% of China’s primary energy consumption. Despite this, some production capacity continued to be released gradually, which posed challenges for the stability of the coal industry. In response, industry leaders suggest that the coal sector should proactively adjust its structure, shift toward sustainable development, and maintain a balanced approach. This includes organizing production according to market demand, controlling the release of capacity, and ensuring stable supply. The revised draft emphasizes a strategic industrial layout: reducing coal exploitation intensity in the eastern region, maintaining stable production in the central region, and enhancing exploration and development in the western region. It also encourages large coal enterprises to lead the consolidation of smaller mines through mergers and acquisitions, forming large-scale, integrated coal groups. These groups are encouraged to expand into sectors like power, railways, and ports, creating synergies across industries. Moreover, the policy promotes collaboration between coal companies and other key sectors such as power generation, metallurgy, chemicals, and transportation, fostering a more integrated and competitive national energy system.

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