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China To Boost Coal Output

March 22, 2022
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By Paul Homewood

 

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China plans a massive increase in coal mining, a move that will dramatically reduce its reliance on imports and deal a blow to its near-term climate actions. 

The National Development and Reform Commission, the nation’s top economic planner, told officials from major mining regions at a meeting late last week that it wants to boost domestic production capacity by about 300 million tons, according to people familiar with the matter. It also plans to build a 620 million-ton stockpile of the fuel split between government, miners and users.

Such an increase in output would cut the country’s already scant dependence on foreign imports after global prices hit record levels in the wake of Russia’s invasion of Ukraine. The measures also highlight concerns that China’s reliance on fossil fuels remains as entrenched as ever, as it seeks to enhance energy security to limit disruptions to economic growth, regardless of the impact on its climate goals.

It’s hard to overstate the importance to China of coal, the most-polluting fossil fuel. The nation produces and consumes more than half of global supply, and it’s the biggest contributor to its world-leading greenhouse gas emissions. China has said that coal consumption should begin to fall off in the second half of this decade as it strives to peak emissions across the economy by 2030.

The production increase would be split, with 150 million tons of capacity coming from new, upgraded operations and another 150 million from open-pit mines and some mines that had previously been shut. Daily output should average 12.6 million tons, according to the NDRC, which is even higher than the record-breaking levels reached in the fall after shortages caused widespread industrial brownouts.

The NDRC didn’t give a timeline for the ramp-up, but if last year’s all-out push on production is anything to go by, it could happen relatively quickly. The added 300 million tons of capacity is equivalent to China’s typical annual imports. The nation produced over 4 billion tons of its own coal last year.

https://www.bloomberg.com/news/articles/2022-03-14/china-seeks-to-cut-coal-import-reliance-with-mining-boom

 

Add in China’s recently agreed deal to import 100 million tonnes of coal a year from Russia, and it is clear that they have no intention of cutting back on coal consumption.

Particularly interesting is this comment in the Bloomberg piece:

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Wind and solar are fine, but China knows you cannot run a grid on them alone.

15 Comments
  1. Ian PRSY permalink
    March 22, 2022 9:07 am

    “… a move that will dramatically reduce its reliance on imports …” – why would anybody want to do that?

    • dave permalink
      March 22, 2022 9:56 am

      ” …- why would anyone want to do that?”

      Obviously a rhetorical question! It does highlight the fact that our Western elite are thick as pigshit in SO many ways. They have pushed the idea of mutual trade and interdependence
      fostering mutual understanding and making war impossible, since ‘both sides have so much to lose.’

      ‘W’on’t you come into my parlour?’ said the spider to the fly.

      I have noticed that today young people know nothing of proverbs and fables. Too much wisdom in them, I suppose. They used to act as a sort of innoculation against the nonsense
      spouted by over-educated fools.

  2. Malcolm permalink
    March 22, 2022 9:27 am

    So the UK’s commitment to the ‘Net Zero’ scam will achieve nothing Paul – except for massive debts of course….

  3. Simon Newington permalink
    March 22, 2022 9:32 am

    I hope this news made Princess nut nut choke on her quinoa !

    • Harry Passfield permalink
      March 22, 2022 9:39 am

      With so much coal now going to be in production she must be ‘nutty slack’.
      Seriously, I wonder what effect this will have on Australian exports.

      • Thomas Carr permalink
        March 22, 2022 10:33 am

        I guess that China does not want to find that it is beholden to Aus. for a major source of energy unlike the unhappy legacy of Angela Merkel and the German Greens in their “dash for gas”.

      • Philip Mulholland permalink
        March 22, 2022 11:59 am

        “Nutty Slack.” Harry, That’s a cultural memory from the past, deep mined from the bottom of the pit 🙂

  4. Gamecock permalink
    March 22, 2022 9:51 am

    ‘and deal a blow to its near-term climate actions’

    Uhh . . . it wasn’t doing anything. Obama exempted them through 2030. At which time they will exempt themselves.

  5. March 22, 2022 10:01 am

    If they even care, in 2030 they will manipulate the numbers and demonstrate a reduction ior slow down in increase on a per capita basis, or relate it to gdp

  6. Harry Davidson permalink
    March 22, 2022 10:13 am

    I suspect that part of this is to obviate any need for Australian coal. The west sees itself as ‘isolating Russia’ etc., perhaps China feels it is getting to a position where it can isolate the west.

    • Philip Mulholland permalink
      March 22, 2022 12:14 pm

      This isolation game reminds me of the old travel weather joke. “Storm in the Channel, Europe cut off”.
      Dr. Steve Turley keeps talking about the Rise of the Civilization State in opposition to Globalism.

  7. jamesgarethmorgan permalink
    March 22, 2022 10:44 am

    Shall we all put our surprised faces on?

  8. Howard Dewhirst permalink
    March 22, 2022 11:01 am

    at Pop 26, China Indai and Russia – and other s refused to sign the west’s net zero – there is no consensus. They have the same climate data we have and do not believe that the catastrophe is upon us. There is NO scientific consensus outside the IPCC circus

  9. Martin Brumby permalink
    March 22, 2022 12:07 pm

    “Daily output should average 12.6 million tons, according to the NDRC”

    Which is, coincidentally, a tad more than the Selby mines produced in their most productive YEAR (1993?) before privatisation in 1995.
    I think there was another couple of million tonnes of mine waste raised – but not bad as the complex was designed only for 10 million tonnes.

    Anyway, although the 2 Billion pounds of taxpayer’s money had been spent, GangGreen and our Beloved Leaders in Westminster (aided by some poor management decisions) shut the whole complex down in 2012. Millions of tonnes of coal remaining but now effectively sterilised.

    Planet saved by whirligigs and moonbeam catchers.

    Unfortunately, the “Climate Emergency” proved that things were worse than geniuses like Davey, Milliband, Deben, May, Johnson etc imagined and we had to import fossil fuels or electricity from fossil fuels (or French Nuclear) from anyone who would sell it.

    If they didn’t have any to spare we could always buy the most expensive and most Chinese nuclear available.

    What could go wrong?

    Admittedly, it is a shame neither China nor Russia nor Mongolia nor Kazakhstan got the memo. Or just stuck it behind the toillet door to laugh at.

    But surely, we have the admiration of the whole world for our brilliant lead towards a new dawn.

    I’m sure they will strew rose petals on our graves.

  10. It doesn't add up... permalink
    March 23, 2022 4:14 pm

    The important factor about China using more col is that it will back out LNG imports which will help those countries hoping to replace some Russian supply. Of course if we used the coal we would have the Chinese advantage of cheaper energy.

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