Shaanxi province, a major coal-producing hub in northwestern China, is gearing up to ensure a steady increase in coal production with expanded capacity next year, aligning with the provincial government's efforts to boost stable economic growth.

The Shaanxi Energy Administration has recently organized a conference, engaging with relevant departments from key coa-producing cities including Baoji, Xianyang, Tongchuan, Weinan, Yan'an, and Yulin. Discussions centered on measures to stabilize coal production growth by the end of 2024, expected achievements throughout 2024, and production plans for 2025.

The meeting underscored the need to prioritize coal production stability, especially during the critical December period. Operational mines should maximize their capacity utilization to promote flat output rises while ensuring safety, it said.

It urged mines under construction to optimize their construction schedules and expedite progress, fostering certain mines like Simengou to commence joint trial runs by year-end.

Each city is encouraged to comprehensively collect data on all coal mines within its jurisdiction. This will enhance 2024 production efforts and aid in creating a scientific plan for 2025 by evaluating factors that could impact coal production and construction timelines.

Shaanxi produced 640.61 million tonnes of coal in the first ten months this year, rising 2.1% from a year ago, according to data released by the National Bureau of Statistics. In 2023, the province's coal output increased by 2.3% year on year to 761 million tonnes, accounting for 16.3% of the nation's total, positioning it as the third-largest producer in China.

Sxcoal's capacity-tracking data showed that Shaanxi's coal production capacity totals 904.06 million tonnes per annum (Mtpa) so far, of which thermal coal capacity reaches 862.76 Mtpa and coking coal amounts to 41.30 Mtpa.

China's National Development and Reform Commission has adjusted 2025 guidelines for signing and fulfilling medium- and long-term coal supply contracts in late November. The minimum signing ratio for coal enterprises has been relaxed from 80% of their own resources to 75%, while the fulfillment rate has been adjusted from an absolute 100% to no less than 90%, with provisions for force majeure events to be excluded from oversight.

These shifts reflect the government's intention to ease pressure on coal producers, especially by freeing up more resources for spot sales in major producing regions such as Shaanxi, Shanxi and Inner Mongolia.

Buoyed by favorable macroeconomic policies, Shaanxi is expected to further release advanced production capacity in the coming year, subsequently injecting confidence into its coal output growth goals and contributing to national energy security.