Shanxi province of China restricts coking coal projects temporarily

Shanxi province of China restricts coking coal projects temporarily

Officials in Shanxi province of China have recently decided to not approve coking plant projects in the region for a definite period to avoid from over-investments. At the meeting held by the officials in Shanxi province, certain procedures for investing coking plant projects will be implemented after this restriction is lifted. The measure taken by the local government aims reducing excessive production of coking coal and the pollution caused during the production of this raw material. In China, due to strong demand both from domestic and foreign markets, together with the rising coking coal prices, producers have started to increase their production capacities. According to the statistics, coking coal capacity in Shanxi province together with the under-construction projects regarding producing coking coal has reached 150 million tons, accounting for 84% of total production in China. However, that consumption at the province has gained speed may cause Shanxi reserves to run out within forty years. Therefore, Shanxi government temporarily restricts investments in coking coal projects. China produced 178 million tons of coke in 2003, indicating a 20% increase when compared with 2002 and exported 14.72 million tons of coke to 51 countries.