China's coal-rich Shanxi maintains high output to mitigate supply crunch

TAIYUAN, Nov. 23 (Xinhua) -- Shanxi, a major coal-producing province in China, has seen the monthly output of raw coal exceed 100 million tonnes for three consecutive months by October, as all mines are producing at full capacity, according to the provincial statistic bureau.

To mitigate the recent coal supply crunch, regions across China have adopted a raft of measures to stabilize energy supply and expand coal production capacity.

In October, Shanxi produced 102.8 million tonnes of raw coal, up 5.2 percent year on year. Its annual output is expected to exceed 1.2 billion tonnes this year.

As of Nov. 21, the province had supplied 21.87 million tonnes of coal to 14 other provinces, autonomous regions and municipalities for electricity generation. It has also fully guaranteed the coal supply to local power generation and heating enterprises with additional 43 million tonnes of medium and long-term supply contracts signed.

Increased coal output and inventories at power plants will help drive down the soaring coal prices, according to the National Development and Reform Commission earlier this month.

It said coal for power generators and heating suppliers is guaranteed as mid to long-term coal supply contracts have roughly covered demand.