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Monday, March 20, 2023

China Ramps Up Coal Mining Amid Power Shortages

China’s coal mines have allegedly been instructed to increase output as a result of a nationwide energy crisis that has caused millions of households and businesses to lose electricity in recent weeks.

According to the Chinese news agency Caixin, three major coal-producing regions have committed to expand production.

Since the middle of last month, several provinces throughout the country have been experiencing blackouts.

As the country exits from its state of emergency, demand for power is surging.

According to the Reuters news agency, a government official and coal dealers in North China’s Inner Mongolia area have instructed more than 70 mines to increase yearly output capacity by over 100 million tonnes.

The region is the second-largest coal producer in the country.

The anticipated 100 million tonne increase in output would account for about 3% of China’s total yearly thermal coal consumption.

The plan is the latest attempt by authorities to boost coal supply as prices have reached new highs and energy companies have been forced to restrict power in vast sections of the nation due to power shortages.

The National Development and Reform Commission, China’s state planner, called on mining and electricity corporations to sign new agreements to fix the situation last week.

A succession of power outages have prompted industries to reduce production or shut down altogether since last month.

The northeastern Chinese manufacturing hubs have been particularly badly impacted.

Energy shortages have caused worry in countries all around the world, including the United Kingdom, continental Europe, and India, in recent weeks.

Consumers in the United Kingdom have been cautioned that when wholesale market prices climb, home energy costs would skyrocket.

Meanwhile, India is on the verge of a historic energy catastrophe, with power companies failing to obtain enough coal to satisfy growing electrical demand.

Cedric Blackwater
Cedric Blackwater
Cedric is a journalist with over a decade of experience reporting on local US news, and touching on many global topics. He is currently the lead writer for Bulletin News.

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