According to the previous report, China current coal supply gap was nearly 30%, resulting in the insufficient supply despite China annual production of 3 billion tonnes. If the current situation continued, it is estimated that the coal will be excavated out in Shandong Province 20 years later.
An insider of the industry told that the coal is still not enough, even if the coal price was CNY 10,000 per tonne in the future. He believed that to change the coal shortage should alter the extensive economic development mode fundamentally.
Although the Shanxi coal output was only 620 million tonnes down 20 million tonnes over previous year, coal output broke CNY 3 billion in 2009 up by 12%YoY. It is obviously erroneous that heavy snow led the coal shortage in the circumstance of the rising of the coal production, because the coal shortage presented in the same period last year.
In view of this, the elimination of the medium and small coal mines can help control, but it is unfavorable for the domestic coal supply. China's coal supply is so huge that only large coal mines can't guarantee the domestic normal demand, so China should relax the restriction to the medium and small mines with strict management to relieve the coal pressure.