Coal news and updates

An industry body has released new data on Wednesday that shows China’s coal sector has been hit by rising stockpiles, falling prices and declining profitability since the beginning of this year, even as Beijing becomes the global leader in development of renewable energy sources, such as wind and solar.

In April, coal production dropped 1.31 per cent year on year and sales dropped 1.29 per cent, according to data released by the China Coal Industry Association (CCIA).

 

In the first quarter of 2014, coal output edged down by 1 per cent to 878 million tonnes, while sales declined 1.4 per cent to 844 million tonnes, new data reveals.

 

Smog filled Chinese cities had forced the administration to reduce coal consumption, a major cause of pollution.

 

Chinese authorities said last month that Beijing will close 1,725 small-scale coal mines with a total capacity of 117.48 million tonnes in 2014 as part of its programme to phase out low-quality coal production.

 

Combined profits of major coal miners plummeted 41.2 per cent, while total losses climbed 39.7 per cent, data showed.

 

Wang Xianzheng, director of the CCIA, said that coal demands in China dropped against the backdrop of the country’s economic slowdown, accelerating transformation of energy structure, as well as rising resource and environmental constraints.

 

China’s economic growth slowed to a six-quarter low of 7.4 per cent in the first quarter of the year, down from an annual figure of 7.7 per cent in 2013.

 

 

Source: Agencies