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PrintChina plans to shut about 3,000 small coal mines with a combined capacity of around 100 million mt/year by the end of 2015, the secretary to Yang Qingsheng, a senior official with the State Administration of Coal Mine Safety, said Monday.
The secretary confirmed reports in the Chinese state media on Friday that the target was part of a national plan to shut small coal mines and achieve widespread industry consolidation.
The number of coal mines in China with a capacity below 300,000 mt/year will drop below 7,000 under the plan, from 10,000 at the end of 2010.
China will shut 625 small mines with a combined mining capacity of 23.47 million mt/year in 2012, the National Energy Administration said in April. In 2011, 407 with a combined capacity of 24.63 million mt/year were shut.
The impact of the closures on China's national coal output is likely to be limited, analyst Mao Xiaoling at Beijing-based Dexin Yongming Consultation said. The combined capacity of the mines, at 100 million mt/year, is less than 3% of China's total capacity of around 3.8 billion mt mt/year.
Some of the smaller mines may also be consolidated into large mining companies and have their capacity expanded and worker safety conditions upgraded, resulting in the addition of mining capacity, Mao added.
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