Chinese authorities have asked 72 coal mines to increase their production amid the energy crisis, Chinese public media said on Friday. Mines located in
Inner Mongolia, a major coal-producing region in China, received an official notice calling for a production increase of a total of 98 million tonnes, according to Securities Times. The country is currently experiencing widespread blackouts that have resulted in full or partial plant closures, affecting production and global supply chains.
There are many reasons for this, but they are mainly linked to the Asian giant’s heavy dependence on coal, which provides 60% of its electricity production. Between soaring coal prices, state control over electricity prices and greenhouse gas emission reduction targets, more than a dozen provinces and regions have been forced to impose restrictions on energy consumption in recent months.
These cuts come as energy demand in China, where the economy has largely recovered since spring 2020, now exceeds pre-pandemic levels. Beijing’s restrictions on Australian coal imports, amid a diplomatic quarrel with Canberra, are not helping. The cuts have reached such a level that they now threaten the country’s growth. Several international banks such as Goldman Sachs or Nomura have lowered their annual growth forecasts for Chinese GDP this week.