East China’s economically developed Zhejiang has retreated from the coal industry as the sixth province after Tianjin, Shanghai, Hainan, Tibet and Guangdong, following the orderly shutdown of Changguang Group No.7 Coal Mine, the only mine operating in the province, sources reported.
Changguang Group No.7 Coal Mine, with a production capacity of 0.19 million tonnes per annum, has stepped down from the stage of history, after producing a total of 3.4 million tonnes of coal in the past 25 years.
The provincial government made this decision for the sake of safety and smooth economic transition, as the mine is highly gassy and its share in Changguang’s entire business is shrinking fast.
The move however, will have rather limited impact on China’s coal market, given the prohibitively low coal output in Zhejiang relative to its annual consumption of 140 million tonnes plus, most of which are sourced from other provinces or foreign countries.
The province has endeavored to restructure its coal sector for many years, and cut the number of coal mines to one in 2010, down from 10 in 2005 (0.63 Mtpa).