China’s top coal province of Shanxi took the lead in starting the annual linkage conference for coal producers, railways and power generators inside the province on Nov. 12 in Taiyuan, the provincial capital city, sources said. 

Shanxi plans to arrange 89.47 million tonnes of coal contracts for power plants operating in the province, of which the key state-owned coal enterprises will supply 38.44 million tonnes and local mines supply 51.03 million tonnes.

There will be 32.93 million tonnes coal transported by railway and 56.54 million tonnes by road, said one official with the Shanxi Economic Committee.

The planned coal supply is an increase of 18.30 million tonnes from the guiding plan in 2007, as the power plants included in the linkage scheme increased to 25 from 20, with installed capacity of 28.28 million kw, up from 21.70 million tonnes.

The contract price for coal of same quality would be slightly lower compared with coal supplied to power plants outside Shanxi, an insider said, adding the price possibly will not rise much as it has risen appreciably this year led by Datong Coal Mine Group.

However, the contract price of Shenhua and China Coal, which have been fulfilling contracts strictly, still has the room to rise, the insider noted.

Though thermal coal price has declined more than 100 yuan/t, the contract price is still 150-200 yuan/t lower than the spot price, according to an official with Yungang Thermal Power Co., Ltd., a subsidiary of Datong Group.

The final price would be settled on the national conference, which is yet to start this year, the official said.

Shanxi summoned coal miners and power generators to negotiate coal supplies and price ahead of the national conference.

Due to coal shortage, the nation’s top coal province also suffered a power shortfall of 4.60 million kw in July this year, and many generating units were forced to suspend.