Coal news and updates

China’s Coal Squeeze Puts $2 Billion Chemicals Project on Ice

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• Yitai’s facility didn’t benefit from measures to cool prices
• Coal that isn’t used for power sells at a significant premium

China’s great coal squeeze has notched up another victim, even as prices of the mineral show signs of moderating.

Inner Mongolia Yitai Coal Co. said on Wednesday it will suspend construction of a 16 billion yuan ($2.4 billion) coal-to-chemicals plant in northern Xinjiang near the border with Kazakhstan, writing down 2.8 billion yuan in the process. Higher coal prices had increased operating costs while volatile oil markets and uncertain taxation issues also raised questions about the venture’s profitability, the company said in a Hong Kong stock exchange filing.