CHINA will maintain daily coal output at more than 12 million tons and accelerate approvals for new coal mining projects to ensure sufficient supply, the country’s top economic planner said yesterday, as prices surge in the wake of the war in Ukraine.

Benchmark spot thermal coal prices at Newcastle Port have soared 35 percent over the past week to a record of US$353.75 a ton, stoked by fears of worldwide supply shortages as the Ukraine conflict escalates.

“We will further release advanced coal production capacity ... and will strive to keep coal production at more than 12 million tons each day,” the National Development and Reform Commission (NDRC) said.

China’s coal production hit a record high of 4.07 billion tons in 2021, mainly buoyed by high operational rate in the fourth quarter when average daily output reached 12 million tons.

“The global energy supply situation has become more severe and complex and energy prices continued to hit new highs,” the NDRC said. “Meanwhile, domestic coal consumption is growing rapidly, posing new challenges to stable coal supply and prices.”

China’s thermal coal futures dropped 5 percent to 865 yuan (US$137.02) a ton in morning trading yesterday.

China generates more than 60 percent of its power at coal-fired power plants. The country’s top leaders have reiterated that China should give full play to coal’s basic guaranteeing role in energy supplies.

(SD-Agencies)