State-held China National Coal Group Corporation (ChinaCoal) has signed medium- to long-term supply agreement with six centrally-administered state-run power utilities, namely: Datang Group, Huadian Group, China Resources Power Holdings, Huaneng Group, State Power Investment Corp and SDIC Power Group. Roughly 500 Mt of coal will be supplied between 2019 and 2023. As per the contract, coal deliveries will amount 97 Mt for 2019 and then gradually increase over the years. The contract price has been set at CNY535/t (around US$S77/t) for the 2019-2021 period but it will be determined by market development trends between 2021 and 2023.
ChinaCoal is a major domestic coal producer with 63 mines spread across several provinces and autonomous regions such as Shaanxi, Inner Mongolia and Jiangsu. 41 mines are in operations and 22 under construction, with a total production capacity of 288 Mt/year. In 2017, the company sold 129 Mt (-2.3% on 2016).
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