Sxcoal Issue 23# | China's premium coking coal production capacity to shrink this yr
China is facing a gradual decline in the production capacity of premium low-volatile hard coking coal, due to the depletion of high-quality coal resources.
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China is facing a gradual decline in the production capacity of premium low-volatile hard coking coal, due to the depletion of high-quality coal resources.
As of the end of 2023, the production capacity of PLV HCC mines nationwide stood at 53.7 million tonnes per annum (Mtpa), marking a decrease of 8% or 4.65 million tonnes compared to 2019, according to data tracked by Sxcoal's Coal Mine Database.
PLV HCC refers to coking coal with a volatile matter no higher than 23.5%, sulfur no higher than 0.8%, and CSR no lower than 65.
This decline is predominately attributed to the resource depletion after decades of extraction. Mines therefore have transitioned to mining other coal seams, or preserved the remaining resource and turned to inferior coal that is used for blending in the process of coke making.
In Liulin county, one major PLV HCC hub in Shanxi province, coal mines are finding ways to secure output when the premium resource is running low. As mentioned in the county's government summary in 2023, coal mines expanded the extraction of Seam 8# and Seam 5# for inferior coal. Also, Nahagou mine modified its extraction project to focus on the Seam 9#, and the Xingwu coal mine to mine high-sulfur coal seam.
According to Sxcoal's research, some mines in Huodong mining area in Shanxi are experiencing a decline in coal quality, leading to a shift to extracting high-sulfur coal. In the Xiangning mining area of Shanxi, there are mines facing depletion of low-sulfur Seam 2# coal.
In 2024, no new PLV mines are expected to be commissioned nationwide. With the resource depletion carrying on and more capacity turning to inferior coal, the production capacity of PLV HCC is expected to continue declining in 2024.
China's PLV HCC resources are mainly distributed in Shanxi, Hebei, Anhui, and Heilongjiang. Specifically, in Shanxi, they are found in the Liliu mining area's Permian Shanxi Formation Seam 4# and 5#, Huodong mining area's Permian Shanxi Formation Seam 2# and 3#, Xishan mining area's Permian Shanxi Formation Seam 2#, and Xiangning mining area's Permian Shanxi Formation Seam 2#.
In Anhui's Huaibei mining area, they are located in the Permian Shihezi Formation Seam 8# and 10#, while in Hebei's Fengfeng mining area, they are found in the Permian Shanxi Formation Seam 2#. In Heilongjiang's Qitaihe mining area, they are situated in the Cretaceous Chengzihe Formation Seam 62#.
For more details on China's PLV HCC resources, contact us at inquiry@fwenergy.com or +86 351 7219 322. You can also reach us at WhatsApp +86 186 3686 3390.
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