CHINA has told 74 mines to increase thermal coal output by 500,000 tons per day to ease supply shortages to the nation’s utilities ahead of the winter, according to two industry analysts briefed on a meeting with the State planner Monday.

    The increase, announced at a meeting between the National Development and Reform Commission (NDRC) and coal miners, would unleash another 15 million tons of new supply each month on to the market.

    It will double the output increases approved by the government in recent days.

    Last Friday, the government partially reversed sweeping capacity cuts enforced earlier this year. Those reductions in production capacity had triggered a frenzied price rally and depleted domestic stockpiles this year.

    “The amount is raised again as the increase was not enough to catch up with the demand from the power generators,” said Zhang Min, a coal analyst with the Sublime China Information Group and one of the sources who had spoken to companies participating in the meeting.

    The NDRC did not immediately respond to requests for comment.(SD-Agencies)