CHINA COAL MINING SECTOR
2017-2018

An infographic about China's coal sector 2017/2018

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SECTOR OUTLOOK

China's mining sector will continue to undergo restructuring processes and reforms, including consolidation, which are expected to leave legitimate players on the market and favour medium-sized and large producers, as well as promoting production and cost-efficiency improvements. The government will encourage foreign initiatives that bring modern mining technologies and innovations to China's coal sector, in order to help increase the efficiency of mining processes and reduce the negative impact of the coal industry on the country's environment.

 

Sector Snapshot

China Coal Mining Sector 2016

 

Source: National Bureau of Statistics, CEIC, Company Data

 

Despite China's efforts to increase the shares of natural gas and clean energy in its energy mix, the country's coal-fired power capacity is expected to increase by 19% in the next five years.

 

This means that China will most likely avoid drastic coal production cuts and will maintain healthy output volumes to prevent market imbalances, such as those of the second half of 2016, which were caused by supply shortages.

 

According to the 13th Five Year Plan (FYP), China's coal output will be limited to 3.9bn tonnes per year (tpa) by 2020. By then, the country is pledged to eliminate 800mn tpa of inefficient and outdated production capacity. 

 

China's Strategic Energy Action Plan (SEAP), for the period 2014-2020, set the country's coal consumption level at 4.2bn tonnes by 2020. The plan also targeted a 62% share for coal in primary energy consumption - which was already reached in 2016. 

 

China's Electricity Development 13th Five-Year Plan (13th FYP) in turn, stipulates more ambitious goals. This plan, which covers the years 2016-2020, sets coal's consumption cap at less than 4.1bn tonnes and its share in primary energy consumption at 58%, by 2020. 

 

This total number of coal enterprises is expected to drop to 3,000 in 2020, while the number of coal mines is expected to reach 6,000, up from the current 5,930 officially registered.

Coal production volume, tonnes mn

Source: EMIS Insights, National Bureau of Statistics, China Dialogue, Platts, NDRC, China Daily

Coal consumption, tonnes mn

Source: EMIS Insights, National Bureau of Statistics, China Dialogue, Platts, NDRC, China Daily

 

Coal production by region, tonnes mn, 2016

 

Source: National Bureau of Statistics, CEIC

China's coal-fired power capacity is expected to increase by 19% in the next five years

 

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The data from this infographic has been brought to you by EMIS Insights: a set of comprehensive reports on individual business sectors in the world's largest emerging markets.

 

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You can hear more about China's coal market at the 16th Coaltrans China in Beijing on 9-11 April, 2018.