Torrential rain that lasted for almost five days straight has forced China's coal hub to close 60 coal mines, piling further pressure on the country already grappling with a power crunch.
Heavy rain beginning on Oct. 2 has suspended 60 coal mines, 372 other mines, 14 hazardous-chemical enterprises, and over 1,000 constructing projects, the Shanxi government said in a notice on Oct. 8.
The halts lay additional stress as the country scrambles to produce more coal to stem a deepening power crisis.
Shanxi has instructed its 98 coal mines to expand annual output capacity by 55.3 million tonnes over the remainder of the year, an official from the provincial government confirmed on Oct. 8 in a document reviewed by Reuters.
Provincial authorities will also allow some 51 coal mines that had hit their maximum annual production levels to keep producing in the fourth quarter and to raise capacity by 8 million tonnes, which is expected to add 20.65 million tonnes of extra supply.
Analysts suggest the reasons for the power crisis can be traced back to a string of policy missteps, including the shutdown of coal plants, and an import ban on Australian coal.
Recently, China reportedly unloaded one million tonnes of Australian coal which had been stored in warehouses along China's coast for months in an effort to ease the energy crisis.
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Monday, October 11, 2021
Heavy Rain Shuts Down 60 Coal Mines in China's Top Coal-Producing Region Amid Power Crisis
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