China power crisis forces ‘serious’ Beijing to order top coal producer to increase output
- The cities of Wuhai, Ordos and Hulunbuir, as well as Xilingol League, have been asked to tell miners they may operate at stipulated higher capacities straightaway
- It is the latest attempt to boost coal supply amid record-high prices and shortages of electricity that have led to power rationing across the country
Chinese officials ordered more than 70 mines in Inner Mongolia to ramp up coal production by nearly 100 million tonnes as the country battles its worst power crunch and coal shortages in years.
The proposed increase would make up nearly 3 per cent of China’s total thermal coal consumption.
In an urgent notice dated on Thursday, the Inner Mongolia regional energy department asked the cities of Wuhai, Ordos and Hulunbuir, as well as Xilingol League, or prefecture, to notify 72 mines that they may operate at stipulated higher capacities immediately, provided they ensure safe production.
An official with the region’s energy bureau confirmed the notice but declined to say how long the production boost would be allowed to last.
The notice followed a meeting on the same day during which the regional authorities mapped out measures for winter energy supplies in response to mandates from China’s State Council, or Cabinet, the state-run Inner Mongolia Daily reported on Friday.
“The [government’s] coal task force shall urge miners to raise output with no compromise, while the power task team shall have the generating firms guarantee meeting the winter electricity and heating demand,” the newspaper said.
The 72 mines listed by the Inner Mongolia energy bureau, most of which are open pits, previously had authorised annual capacity of 178.45 million tonnes.