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The Development and Current Situation of China's Coal Industry
Classification:Trends Release time:2013-08-12 23:59:41
Wang Hede (middling coal Science and Engineering Group Beijing Huayu Engineering Company)

1、 China's coal resources and primary energy structure

1. Coal resource quantity and distribution range

The distribution area of coal resources in China is about 600000 square kilometers, with a total resource volume of 4900 billion tons, of which 870 billion tons have been proven to be available, and 4030 billion tons are predicted to be available. The top four resources are Xinjiang, Inner Mongolia, Shaanxi, and Shanxi, accounting for a total of 83.29%.

2. Main coal types and distribution range

Coal in China ranges from low grade lignite to high grade anthracite. Bituminous coal accounts for 57%, coking coal accounts for 29%, lignite accounts for 13%, and other coal types account for 1%; Gas coal accounts for 42%, fat coal accounts for 18%, coking coal accounts for 16%, and lean coal accounts for 24% in coking coal.

3. China's primary energy structure

According to BP Energy statistics, the total production of primary energy in the world in 2010 was 12.0864 billion tons of standard oil, of which China had 2.2824 billion tons of standard oil, and the total consumption of primary energy was 12.0024 billion tons of standard oil, of which China had 2.4322 billion tons of standard oil. Since 2009, primary energy production and consumption have surpassed that of the United States; In 2010, China's total energy production was 2.99 billion tons of standard coal. The total energy consumption of that year was 3.25 billion tons of standard coal; Since 2009, China has become a net importer of coal. In 2010, China's coal imports and exports were balanced, with a net import of 145.75 million tons.

In 2010, coal accounted for 76.8%, oil 10%, hydropower 9% and natural gas 4% of China's total energy production; In total consumption, coal accounts for 70.9%, oil 17%, hydropower 8% and natural gas 4%.

2、 A Review of the Development History of China's Coal Industry

Experienced the planned economy period from 1949 to 1980, the extensive development period from 1981 to 1997, the rectification and governance period from 1998 to 2000, and the golden development period from 2001 to 2011.

In 1949, China produced 24.32 million tons of coal, 3.52 billion tons in 2011, and 57.6032 billion tons of communist coal in 63 years.

3、 The Development Status of China's Coal Industry

At the end of 2010, there were approximately 14000 coal mining enterprises in China, with an annual output of 300000 tons or more accounting for approximately 4000. In 2010, the country produced 3.24 billion tons of raw coal, accounting for nearly 50% of the world's total production. The top ten coal producers are Inner Mongolia, Shanxi, Shaanxi, Henan, Guizhou, Shandong, Anhui, Hebei, Xinjiang, and Yunnan. The total production of the top ten is 2.808 billion tons, accounting for 86.6%; The top ten producers are Shenhua, middling coal Energy, Shanxi Coking Coal, Shaanxi Coal Chemical, Shanxi Datong, Henan Coal Chemical, Shanxi Lu'an, Jizhong Energy, Huainan Mining, and Yangquan Coal, of which Shenhua accounts for 11.02% of the country.

4、 The main problems in the current coal industry

1. Excessive manpower and low work efficiency

In 2010, there were over 6.5 million people directly engaged in coal production, with a per capita annual output of less than 500 tons, only 1/22 of the United States; The top ten large coal enterprises only account for 35.67% of the national coal production, which is far from the concentration of major coal producing countries in the world.

The average recovery rate of state-owned key coal mines is less than 60%, while that of township coal mines is only 25%, resulting in serious waste of resources.

In 2008 and 2009, the mortality rate of one million tons was still as high as 1.182 and 0.892, which is 134 times higher than that of the United States and 14 times higher than that of India.

4. Coal mining causes serious environmental pollution and ecological damage.

5、 Analysis of the current situation in the coal industry

1. The main reasons and consequences of the severe situation

1.1 Downstream Industry Coal Consumption Demand Decline

Starting from 2012, the year-on-year production of major industrial enterprises decreased, with a thermal power generation of 3855.45 billion kW · h, a decrease of 14.2% in growth rate; The crude steel production was 71.716 million tons, a decrease of 2.6%, while the cement production was 2.21 billion tons, a decrease of 5.5%.

1.2 Continuous release of coal production capacity and production growth

In 2012, the raw coal production was 3.65 billion tons, with an actual production capacity of 3.9 billion tons. A large number of newly constructed coal mines during the 11th and 12th Five Year Plans will be released before the end of the 12th Five Year Plan, and it is expected that the actual production capacity will reach 4.5 billion tons by the end of the 12th Five Year Plan.

1.3 Coal imports impact the domestic market

In 2011, China became a global importer of ****** coal. In 2012, it imported 289 million tons, a year-on-year increase of 29.8%. In 2013, it is possible to exceed 350 million tons because China is the country with the highest coal prices in the world.

1.4 Severe situation

At the end of 2012, coal enterprises stored 85 million tons of coal, a year-on-year increase of 58%. Coal prices declined, and the market coal price at Qinhuangdao Port was 640 yuan/t, a decrease of 170 yuan/t from the beginning of the year. The metallurgical coal price has decreased by 300-400 yuan; The investment growth rate has declined, with a total investment of 528.6 billion yuan in the mining and selection industry in 2012, a decrease of 21.7%; The company's profits have decreased, with a year-on-year increase of 2.526 billion yuan in main business costs and a 23.35% decrease in profits.

2. Industry development forecast

2.1 Low growth of domestic coal consumption;

2.2 Coal overcapacity will become the norm;

2.3 Coal imports will continue to grow;

2.4 The golden decade is over, and the cold winter of coal is approaching.

Excerpts from Academic Committee and Chief Engineer's Office

August 2, 2013


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