Corrected: China\'s coal output hits highest in over three years as mines start up

Corrected: China's coal output hits highest in over three years as mines start up

Reuters  |  BEIJING 

(Corrects paragraph 5 to show that declined to be identified due to lack of approval from regulator, not because of stock exchange rules)

(Reuters) - China's December coal output climbed 2.1 percent from the year before, government data showed, hitting the highest level in over three years as major miners ramped up production amid robust winter demand and after the country started up new mines.

Miners produced 320.38 million tonnes of coal in December, according to data released on Monday by the That is the largest volume since June, 2015.

approved more than 45 billion yuan's ($6.64 billion)worth of new coal projects last year, much more than 2017, official documents show.

That came after the country closed old and more-polluting coal mines as part of its battle to clean up the environment.

"Coal capacity coming online will lead to another increase in output this year after boosting December output to a more than three-year high," said a Beijing-based coal with a He declined to be identified as he did not have approval from the securities regulator to be quoted in media discussing the matter.

The new projects stoked overall coal output last year, with annual production rising 5.2 percent to the highest since 2015 at 3.55 billion tonnes.

However, some miners and traders expect supplies to fall sharply in January following a crackdown on coal mines after a major accident on Jan. 13 in the northwestern province of Shaanxi, potentially dragging on output through the year.

"It is now possible that will implement the strictest-ever regulations on illegal production, which would significantly reduce output in the province for the year," Zhai Yu, at analysts said in a note published last week.

"If stricter checks are extended to other provinces, domestic supply could tighten from its currently relaxed situation, helping coal imports as a result," Zhai wrote.

accounts for about 20 percent of China's annual coal production.

(Reporting by and Dominique Patton; Editing by Joseph Radford)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, January 21 2019. 12:15 IST