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The energy crisis is ravaging China, as coal prices soar to unseen prices North China’s Inner Mongolia autonomous region have been ordered to boost output by nearly 100 million tons. 72 mines in the three cities There are 72 mines in 3 cities under the directive.

Mongolian Coal Mine

Demand for energy in Asia has only got hotter as shortages of electricity in China led to blackouts and countries compete for LNG and coal shipments ahead of winter. Australia's exports in August climbed 4.1% in the month to A$48.5 billion led by LNG, hard coking coal and thermal coal. Australian goods exports to China alone stood at A$18.6 billion in August, up 55% on a year earlier and showing little impact from ongoing trade and political tensions with Beijing.

The Inner Mongolia’s energy bureau sent out an urgent notice Thursday for 72 mines in the three cities of Wuhai, Ordos, Hulunbuir and the region of Xilingol league to raise annual production capacity by 98.35 million tons which equates to 55.11%. They did provide the objective of daoing it safely.

The order is part of a larger drive to grow China's core coal capacity, mines were told to complete procedures for the increase by the end of the month. But it is unclear how long that will take to translate into actual output.

Seperately Xinhua reported that "some institutional researchers believe that the Inner Mongolia Energy Bureau issued a document involving 72 coal mines, proposed to increase the nuclear production capacity by 98.35 million tons, said to organize production today and speed up the approval of nuclear production."

Source: TC, Caixan , Equal Ocean

From The TradersCommunity News Desk

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