Coal news and updates

Inner Mongolia Xilingol Jan-Jul coal output at 54.49 mt

Xilingol League in northern China’s Inner Mongolia produced a total 54.49 million tonnes of coal over January-July this year, down 20.8% from a year ago, showed data from the Xilingol Coal Industry Administration on August 18.

In July, the coal output of Xilingol fell 31.6% on year to 6.25 million tonnes, said the administration.

Over January-July, total output value of coal industry in Xilingol fell 19.7% year on year to 7.77 billion yuan ($1.27 billion), with the value in July at 1.02 billion yuan, down 18.9% from the year prior.

The drop was mainly due to China’s slowing economic growth, energy structure adjustment and air pollution control, said the administration.

However, Xilingol League is still well competitive in advantages of location, price, along with the development of enterprises and power transmission lines.

Over 95% of the current coal mines in this region are open-pit mines with low production cost. The average coal price is around 120 yuan/t with VAT, which is appealing to neighboring customs.

Xilingol League has built 14 coal mines with annual capacity above 1.2 million tonnes, including 11 state-owned and state-controlled enterprises, with combined capacity at 96.2 million tonnes or 96.1% of the total.

Presently, one AC power transmission line has been approved by the government, and another DC power transmission line is under approval procedures. The completion of a 17 GW supporting project will increase annual raw coal consumption by over 65 million tonnes.

The average coal price rose 1.4% on year to 142.6 yuan/t in this region over January-July, with the July price averaging 162.5 yuan/t, up 18.5% from a year ago.

 source: http://en.sxcoal.com