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Shanxi increases coal output to ease power coal strain

By Du Xiaoli (chinadaily.com.cn)
Updated: 2008-07-16 11:31

As some provinces experience power shortages due to a lack of power coal, Shanxi Province is making great efforts to organize key State-owned collieries to expand coal output under the precondition of ensuring safety, according to the China Youth Daily.

As a leading coal production province, Shanxi will go all out to ensure power coal supply, said Zhang Baoshun, Shanxi's Party secretary.

Shanxi's coal output hit more than 330 million tons in the first half of this year, up more than 40 million tons year-on-year, or an increase of more than 14 percent. The power coal output reached 181 million tons, up 28.915 million tons year-on-year, or an increase of 19 percent, and accounted for 55 percent of the total production of crude coal in the province. Shanxi also achieved coal sales of 278.1702 million tons outside the province, up 24.7571 million tons year-on-year, or an increase of 10 percent.

Global energy prices have risen greatly since the beginning of the year. Domestic demand for coal increased rapidly and coal prices went up nationwide. Some provinces adjusted various coal prices, including key contract power coal. So far, the average combined sale prices of power coal of Shanxi's five leading coal mine groups is 350 yuan ($51.23) per ton, 13 yuan lower than the average sale prices nationwide.