Safety shut down has limited impact on China’s coal production in 2014
China's National Energy Administration (NEA) recently announced the target of consolidating 1,725 coal mines with total outdated coal capacity of 117 million tonnes in 2014. We estimate the capacity reduction through mine safety shut down would only account for 2% of China's total production, even in an upside scenario. Provinces in southern China such as Sichuan, Hunan and Guizhou that have high accident rates could see up to 28% of coal mine capacity closed this year.
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China continues to consolidate small coal mines due to mine safety issues