China's coal industry says times are hard, outlook worse
Updated: 2014-07-25 10:50
(Agencies)
|
|||||||||||
More than 70 percent of China's coal firms are making losses, the head of the coal industry association said on Thursday, with prices eroded by falling demand growth, a worsening supply glut and a war on smog.
Wang Xianzheng, the chairman of the China Coal Industry Association, told an industry forum that the problems facing the coal sector were expected to get worse, news agency Xinhua reported.
|
|
He added that more than half of Chinese coal enterprises were now struggling to pay the wages of their workers.
As part of its war on pollution, China has been trying to reduce the share of coal in its overall energy mix. It has vowed to cap total production capacity at 4.1 billion tons by 2015, and has been closing coal-fired power plants in smog-hit regions like Beijing.
Total raw coal production reached 1.85 billion tons in the first six months of the year, down 1.8 percent compared to the same period of last year, according to data from the National Bureau of Statistics.
However, while authorities have worked to shut hundreds of small, unsafe and inefficient mines, many new large-scale mines are still being built, and analysts expect total annual production capacity to reach as high as 4.7 billion tons by the end of next year.
At a separate news briefing on Thursday, Huang Libin of the Ministry of Industry and Information Technology said coal was one of China's worst-performing sectors this year, along with steel and nonferrous metals. He said profits in the sector fell 43.9 percent in the first five months.
Related Stories
China to curb blind investment in coal-to-gas 2014-07-23 10:00
Inner Mongolia eases rules on coal firms 2014-07-04 08:43
Shanxi Coal takes Decheng to court over payment issues 2014-06-28 06:50
China to close over 2,000 coal mines by 2015 2014-05-31 13:59
The day of a coal miner 2014-05-21 16:42
China's coal production, sales drop 2014-05-08 10:23
Today's Top News
TransAsia crash while landing in Taiwan
UK fraud office liaising with China on GSK bribery case
Death toll in Gaza mounts to 701
Meat supplier in global crisis
Dogs 'capable' of feeling jealousy
Five detained over stale meat scandal
5 more universities set up human rights centers
Rebels likely downed jet 'by mistake'
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
Reading into an online age |
China helps fight international war on drugs |
Crackdown on terrorist attacks |
My China Story: Meeting the master |
Long march to end employment bias |
Variety is the spice of academic life |