Shanxi, a major energy base in China, is expected to increase raw coal output by more than 60 million tonnes in 2023, setting a production target of at least 1.365 billion tonnes.

According to data from the Shanxi Provincial Bureau of Statistics, the province's coal output increased by 10.4% in the first two months of 2023 to 214.97 million tonnes. This suggests an annualized output of 1.29 billion tonnes, but the figure is actually underestimated as coal production is typically affected by the Chinese New Year holiday.

An overall plan for mineral resources in Shanxi for the period of 2021 to 2025, released by the provincial government, aims to keep the coal production capacity stable at no more than 1.56 billion tonnes per year, the annual coal production of around 1.4 billion tonnes and around 900 coal mines in operation.

Shanxi has abundant coal reserves, with 27.09 billion tonnes in total, making it the largest in China. The province has a coal-bearing area of 64,800 square kilometers, accounting for 40% of its territory. Shanxi has complete coal types that feature "low sulfur, low ash, low phosphorus, high calorific value, high volatility, and strong caking".

The increase in Shanxi's coal production is expected to boost the local economy and help secure China's energy security.

Shanxi consumes less than half of its production, with the outbound delivery even higher than the entire production of Xinjiang, which ranks fourth in the country, making the province as the backbone of the country's coal supply.

China has pledged to peak its carbon emissions by 2030 and achieve carbon neutrality by 2060, which may require changes in Shanxi's energy structure and further development of clean energy sources.

(Writing by Alex Guo  Editing by Harry Huo)
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