Ambitious coal destination from China

China aims to significantly reduce the country's dependence on coal imports by undertaking a significant increase in coal mining. According to Bloomberg sources, the National Development and Reform Commission (NDRC), the country's most important economic planning agency, met with authorities in the main mining regions last week and asked to increase local production capacity by 300 million tons. It is also stated that the commission plans to create 620 million tons of stock to be divided among miners, the government and users. It is thought that such an increase in production could end Russia's limited dependence on imported products, which reached record prices after the invasion of Ukraine. These measures address concerns that China's dependence on fossil fuels is greater than ever, while also expanding the country's energy security and aiming to limit its negative impact on economic growth.

Coal is critical to Chinese energy security

Coal is of critical importance to China. While the country produces and consumes half of the coal in the world, this situation stands out as the most important factor in having the highest greenhouse gas emission rate in the world. China says it expects coal consumption to decline after 2025. It is stated that of the 300 million increase, 150 million will come from new or refurbished operations, while the other 150 million will come from currently open or previously closed mines. The NDRC announced that they expect daily production to reach 12.6 million tons with the decision taken. The agency did not provide a timeline for the increase. The 300 million-ton increase figure corresponds to the annual import figure of China. The country produced 4 billion tons of coal last year. The new procurement orders follow other measures aimed at ensuring a 60 percent coal-fired power system. The NDRC announced that it will soon announce a giant new solar panel field and wind energy projects to be established in the desert, following the coal production that ensures the continuity of energy production in the country.