Prospects for China's Coal Industry Development

For a long period of time, the Chinese Government has been attaching great importance to and supporting the rapid development of the coal industry. Particularly since more than 30 years ago, when China introduced the Reform and Opening-up policy, the reform and development of the Chinese coal industry has witnessed world-recognized achievements. National coal production increased from 618 million tonnes in 1978 to 3.52 billion tonnes in 2011. While China?s coal production accounts for 49.5% of the world?s total, its annual production growth contributes to over 80% of global production growth. China is a country utilizing coal as its main source of energy. As the Chinese Government gives support to the rapid development of new and renewable energy sources, as well as to increased coal utilization efficiency, the ratio of coal in the primary energy consumption mix will gradually decline. However, for a long period of time to come, the total volume of coal demand will keep rising modestly. The Chinese Government has been highly committed to and actively promoting the overall, coordinated and sustainable development model, which puts people first. It has put forward a strategic task to build an ecological civilization, and highlighted its resolve to uphold the basic national policy of resource conservation and environmental protection, with a view to the pursuit of sustainable development. China will incorporate its response to climate change into the national economic and social development program, and take effective measures to lower CO2 emissions 40?45% per unit of GDP in 2020 compared to 2005. At the same time, China will increase the ratio of non-fossil fuels to 15% in the primary energy consumption mix. All of the above factors have raised requirements for the Chinese coal industry, with implications for clear directions, plans and goals for the development of the coal industry.