Reuters reports that China’s state planner has finalized a rule to set up a coal production reserve system. They write:
China’s state planner on Friday finalised a rule to set up a domestic coal production reserve system by 2027, aimed at stabilising thermal coal prices and supplies to power plants.
The rule, which was first issued in draft form by the National Development and Reform Commission (NDRC) in December, called for 300 million metric tons of “dispatchable” annual coal production by 2030, equivalent to about 6% of last year’s output.
China set a goal in 2021 to have coal reserves equivalent to 15% of annual output stocked at mines, ports, power plants and other designated storage areas. […]
China is the world’s top coal consumer and producer, mining a record 4.66 billion tons last year. But the country has been concerned about energy security since a crippling domestic coal and power shortage in 2021 that prompted a probe into soaring coal prices.
Coal output is expected to stabilise this year as China ramps up renewable power and is likely to notch just 1% production growth, according to an industry group forecast.
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