Shanxi, China's largest coal-producing province, plans to put
the brakes on the further expansion of coal mining in the next five
years. The move is part of tough measures to clean up the sector's
record in environmental damage, the waste of resources and mine
accidents.
Shanxi governor, Yu
Youjun, made the pledge at a press conference Sunday night on
the sidelines of the Fourth
Plenary Session of the National People's Congress (NPC)
in Beijing. Yu said the provincial government aimed to upgrade the
region into a "new energy and resource base."
"We cannot continue with the rough way of development any more
and must limit coal production strictly with the guidance of the
concept of the 'Scientific Approach to Development'," Yu said.
As China aims to build a more effective and environment-friendly
economy, the lack of efficiency of the coal industry has become a
growing concern. Official statistics show that it takes 2.45 tons
of water on average in China to produce a ton of coal. The coal
production rate in many small mines is as low as 25 percent and
some by-products such as the coal-bed methane?are often
wasted.
Shanxi produced 600 million tons of coal last year, accounting
for 26 percent of China's total output. Yu said Shanxi could
guarantee an annual output of 700 million tons in the next five
years -- about a quarter of the country's estimated coal demand --
by increasing the recovery rate of coal?that can be extracted
from the coal-bed without more mining. It is currently shutting
down mines with an annual output below 90,000 tons and pushing
those producing less than 200,000 tons per year to introduce more
advanced and environment-friendly technologies.
"We will also introduce strategic partners to establish
large-scale coal mine groups with highly competitive and advanced
technologies," he said.
What's more, the local government will promote merger and
acquisitions to reduce the number of mines to 2,500 by 2010 and
ensure 80 percent of the province's coal output comes from mines
with an annual capacity above 1 million tons, said Yu.
Shanxi has shut down 4,876 illegal mines since last September
and punished about 1,200 people including more than 60 local
officials who turned a blind eye to illegal operations and
made? financial gains from their operations.
Coal accounted for 66 percent of China's energy supply last year
and will remain the top priority in the long-term energy strategy
of China, which is wary of any further heavy reliance on imported
oil. China is now the world's second largest oil importer after the
US.
Yu said it was a priority in Shanxi's 11th
Five-Year?Guidelines (2006-2010) to develop the more
value-added coal chemical industries such as power-generating coke,
coke oven gas and alcohol-ether fuel, in addition to making
progress in other areas such as equipment manufacturing, the
development of new resources and tourism.
About half of the coke supply in the world market is from
Shanxi.
The province is not only famous for black coal. It also boasts
many brilliant cultural legacies such as the Yungang
Grottoes in Datong and well-preserved grand courtyards, which
were formerly the homes of the country's richest bankers in ancient
times.
Yu, previously the mayor of Shenzhen in south China's
Guangdong Province, will lead a delegation to Hong Kong in early
July to promote local business projects to overseas investors.
(China Daily March 7, 2006)