China's National Development and Reform Commission has projected recently that China would need 2.25 billion tons of coal this year, with 2.17 billion tons for domestic demand and 80 million tons for exports.

The licensed capacity of coalmines stands at 2.26 billion tons, according to the latest survey of the NDRC. In 2005, at least 60 million tons of capacity was added. However, that will be offset to some extent by the shutdown of some 4,000 small mines failing to offer safe production conditions.

Generally, transportation of the coal, albeit expected to be improved this year, will still face pressure, with limited increase in railway and waterway transportation capacity.

Transportation availability of coal for living, fertilizer and power generation will be given priority. 1.21 billion tons of coal, for example, will go to fuel power.

Besides, enterprises which do well in saving, utilization and recycling of resources, as well as those well-performing major businesses in industries thought to have oversupply, will also be favored.

The NDRC, together with the Ministry of Railways and Ministry of Communications, has urged coal and power enterprises to reach deals on coal and transportation supply within this month.

By People's Daily Online