China Shenhua Energy Co., Ltd. attributed its first-half production decline to mine face relocations, delayed overburden stripping at open-pit mines and thinning coal seams, the company said at a results briefing on September 4.

Commercial coal output totaled 249.9 million tonnes in January-June, down 3.6% from a year earlier, or 9.3 million tonnes less, achieving 48.7% of the annual production plan. While the percentage decline appears modest, the absolute reduction is significant for a company producing hundreds of millions of tonnes annually.

Wang Xingzhong, vice president of China Shenhua, said at the briefing that face relocations at the Buertai and Halagou mines disrupted production. For underground mines, face relocation is part of the working face transition process, requiring equipment migration, installation and production linkage, which temporarily alters the original mining rhythm. The company stressed the impact was temporary.

Production at the Shenbao open-pit mine faced different challenges. Wang noted the mine was affected by delayed land acquisition and overburden stripping since the second half of last year, with rainfall further complicating construction and production organization. The company expects output to gradually normalize, though the recovery pace will depend on subsequent stripping progress, operational sequencing and mine production scheduling.

Overburden stripping is a prerequisite and core process for open-pit mining — coal cannot be extracted until the overlying rock and soil are removed. When stripping falls behind schedule, working faces are constrained and output release is limited during that period.

The Yujialiang mine encountered changing geological conditions, with China Shenhua attributing lower output to thinning coal seams. Seam thickness directly affects production — thick seams typically yield higher output at lower cost, thin seams produce less at higher cost, while medium-thick seams offer optimal mining efficiency. When seams thin, mines must reorganize production based on geological conditions, creating short-term pressure.

Beyond the mines mentioned, weak demand also contributed to the first-half decline. Insufficient coal demand growth in the Xinjiang and eastern Inner Mongolia regions was another factor, according to the company.

Despite the shortfall in progress, the company said the impact on achieving its full-year plan target remains limited. China Shenhua said it will organize production in the second half based on geological conditions and market demand, aiming to meet its annual output target.