Page 11 - AsiaElec Week 19 2022

AsiaElec COAL AsiaElec

China moves to

invest in long-term

coal development

CHINA BEIJING has announced plans to invest a total of the majority of the 1.4 billion population.
$15.12bn in the nation’s coal mining infrastruc- This is not expected to change any time in
ture in its latest move to guarantee a long-term the foreseeable future according to the nation’s
domestic electricity supply, . deputy head of the National Energy Administra-
Announced by the nation’s Central Bank in tion, Yu Bing, quoted by the government’s official
Beijing, the 100 billion yuan to be pumped into Xinhua News Agency. In 2021, 60% of all Chi-
domestic coal mining will be offered in the form na’s electricity came from coal powered plants
of credit lines to help increase development of according to Yu.
existing mining infrastructure in addition to Figures from the first quarter of this year sup-
shoring up energy storage facilities. port Yu’s assertation with coal output at home up
Reports indicate that these loans will be over 10% from a year earlier to 1.08 billion tons.
issued on a monthly basis. Central Bank investment is far from the only
The announcement is being seen in large part method Beijing is using to help maintain an
as a significant step towards China insuring itself overwhelming reliance on coal however.
against increasing uncertainties in global coal Imports of coal to China this month will be
supply chains at a time prices are on the rise tariff free in a rarely seen approach to guaran-
Much of the initial investment is being fore- teeing supply and helping to stock supply depots
cast to go on state of the art mining equipment ahead of the summer time electricity peak once
and mine construction substructures to help temperatures start rising.
improve safety records across the industry. Hun- Similar moves were last seen during the
dreds of miners die each year because of unsafe global economic crisis in 2008.
mining practices across China. As a result, coking coal and anthracite
More environmentally friendly mining imports in addition to more commonly seen
techniques as well as improved remotely oper- thermal coal imports will see regular tariffs of
ated underground machinery have also been between 3% and 6% removed until at least May
earmarked as areas on which funds can now be 31st.
spent. At home too, mines are under pressure to
A statement on the People’s Bank of China help the government reach its goal of increas-
(PBC) site made mention of guaranteeing sup- ing its nationwide annual capacity by 300 mil-
plies of thermal coal to help the nation’s coal lion tons; in part to be achieved on the back of
power companies avoid widespread power cuts new mining projects, and in part by pushing for
like those seen last winter. increased output by existing facilities.
The same statement says of the current state It is not coincidental that this figure is roughly
of play in the Chinese energy industry that it is equivalent to annual imports of coal in recent
“complex and evolving” which in turn may lead years according to local analysts.
to “greater uncertainly and challenges” for the And, whilst Chinese media backs the
existing domestic energy infrastructure. increased spending on mining infrastructure,
Despite ongoing investment in renewa- an official stamp of approval has come in the
ble energy forms, primarily wind and solar in shape of the influential National Bureau of Sta-
China, and a number of nuclear power stations tistics deeming China in the mid to long term
at different stages of construction, coal power now capable of guaranteeing its own energy
remains the leading source of energy supply for supplies.™

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