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China plans to cut its outdated coal capacity and use cleaner coal

According to the coal industry 2016-2020 development plan, China plans to reduce its outdated coal capacity by 800 Mt/year by 2020 while increasing use of 500 Mt/y of cleaner coal capacity over the period.



The Chinese Government expects total coal output to stand at about 3.9 Gt in 2020, up from 3.75 Gt in 2015, while the domestic consumption would reach 4.1 Gt of coal in 2020, up from 3.96 Gt in 2015. The plan foresees that around 3,000 coal enterprises will be operating in 2020, mostly large companies, running about 6,000 coal mines, most of them being large-capacity coal mines. The plan also outlines targets to improve coal production safety and efficiency, as well as reducing impact on the environment.



China reached ahead of schedule its target to reduce its outdated coal production capacity by 250 Mt in 2016. The country now aims to increase these targets by 10% in 2017 and extend it to other industries such as cement, glass, electrolytic aluminium and shipping.

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