The trend of coal overcapacity has a significant impact on the healthy development of the industry

According to the latest data from the State Coal Mine Safety Supervision Bureau, the coal production capacity of the coal mines under construction and renovation and expansion in the country totals 1.1 billion tons. By 2010, the total national coal production capacity will exceed 3.1 billion tons, which is 500 million tons more than the planned target.
“The issue of coal overcapacity has already emerged.” Zhao Iron Hammer, director of the State Coal Mine Safety Supervision Bureau, said recently. He believes that this will affect and restrict the sustained and healthy development of the coal industry.
According to the examination results of the national coal mine safety supervision bureau, the National Development and Reform Commission and other local coal production capacity review results, the average single well size in China's coal mines is only 124,000 tons, and the issue of low-level duplicate construction is very prominent.
As China's basic energy, coal accounts for nearly 70% of primary energy. As the economy continues to heat up, China’s coal production has jumped from 998 million tons in 2000 to 2.38 billion tons last year; investment in the coal industry has increased by more than 50% year after year, and new production capacity from 2002 to 2006 6 166 million tons.
In order to improve the safety production level and industrial concentration of coal mines, the country has closed more than 8,000 small coal mines in the past two years and plans to increase the number of small coal mines closed to 10,000 by the end of this year. The "Eleventh Five-Year" development plan for the coal industry proposes that the capacity of small coal mines to be compressed in five years will be more than 380 million tons.
The current problem of small-scale coal mines being built at the border is prominent. The data from the National Coal Mine Safety Supervision Bureau shows that at present, among coal mines under construction and reconstruction in the country, small coal mines account for 82.9%, and in some areas in the southwest, the average single well capacity of newly constructed and expanded mines is only 70,000 tons.
Zhao hammered that all localities and departments should be determined to stop the illegal construction while consolidating the results of mine rectification and shutdown, and take effective measures to truly improve the safety production level and industrial concentration of coal mines.
The "Eleventh Five-Year" development plan for the coal industry proposes that the new large- and medium-sized coal mines in the country are mainly distributed in 13 large-scale coal bases. At the same time, the state stopped approving coal mine projects with a capacity of 300,000 tons or less.

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