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Saturday, 05 September 09
SHANXI AIMS TO MAINTAIN 2009 COAL OUTPUT AT LAST YEAR'S LEVEL


Interfax-China reported that, Shanxi Province, the country's second-largest  coal producing region, is aiming to keep its annual coal output at around 2008's level, state media reported on Sept. 4. Shanxi produced  650  million  tons  of  coal  last  year. 

Although the province's  annual production capacity is 900 million tons, a government effort to  suspend  operations  at  many small-scale coalmines to reduce coalmining  accidents  left  a  significant proportion of the province's production capacity idle, according to Shanghai Securities News. Over the  past  few months of this year, Shanxi's coal output has shrunk slightly  and has been surpassed by the Inner Mongolia Autonomous Region as China's  largest  coal  producing  region.  However,  the  province's contracting GDP (gross domestic product) has pushed the local government to ask local coal firms to pick up their output starting in September.

The local  government  hopes  its  efforts will help the province's coal output grow gradually to 1.2 billion tons by 2011, when most small-scale coalmines  in  the  province  will  have been merged or been absorbed by larger companies  in  order  to  meet  a new minimum production capacity standard of 900,000 tons a year, according to the paper.
Source: Interfax



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