Development of western coal industry in Mongolia, Shaanxi, Gansu and Ningxia to take the lead

Recently, the National Development and Reform Commission and the National Energy Administration held a meeting to prepare drafting guidelines for comprehensive energy development in the "Golden Triangle" region of Mongolia, Shaanxi, and Gansu. The National Development and Reform Commission and leaders of various local governments in Inner Mongolia, Shaanxi, Gansu, and Ningxia, as well as leaders of some energy companies, participated in the meeting.

Song Zhichen, a researcher in the energy industry at China Investment Advisors, pointed out that in the upcoming "12th Five-Year Plan" energy plan, the coal industry will undergo major changes during the "12th Five-Year Plan" period. The relevant sources pointed out that the "12th Five-Year Plan" period China's coal production and development will revolve around the "control of the eastern region, the stabilization of the central region, and the development of the western region." In the short term, the most developed coal production areas in the western region are mainly in the Mongolian, Shaanxi, Gansu and Ningxia regions. The coal resources in the region are well-stocked and have a certain basis for the coal industry, and are also closer to the central and eastern regions. The pressure on the construction of transportation conditions is relatively small. Therefore, during the “Twelfth Five-Year Plan” period, this area will become a key area for the development of the national coal industry.

Actually, from a production point of view, the total coal output of the Mongolia, Shaanxi, and Gansu region has taken a pivotal position nationwide. The output of raw coal in the Inner Mongolia Autonomous Region exceeded that of Shanxi Province and became the country’s largest coal-producing province in 2009. Moreover, in the first three quarters of this year, it was still ahead of Shanxi Province, and coal production in Shaanxi Province has consistently ranked the third largest coal-producing province in China, and the growth rate of coal production is quite obvious. Zhang Yanlin, research director of China Investment Consulting, pointed out that in the first three quarters of this year, the total output of raw coal in the Mongolian, Shaanxi, Gansu and Ningxia regions was about 889 million tons, accounting for 36.3% of the country's total raw coal production. The development of the coal industry in the Mongolia, Shaanxi, Gansu and Ningxia regions is very important for China’s coal industry. The construction of the industry has a positive significance.

However, there are also some problems in the development of the coal industry in the Mongolia, Shaanxi, Gansu and Ningxia regions. First, there are few large-scale local coal enterprises in the region. The resources are mostly controlled by the central enterprises. In the first three quarters of this year, Shenhua Group, China Coal Group and Yimin Group produced 259 million tons of coal in the region, and the strong position of large-scale central enterprises The development of local enterprises is limited, so the current status of the coal industry in the region is very different from the situation in which Shanxi Province is dominated by local coal companies. Second, the production of raw coal in township coal mines in the region is relatively large, and the scale of township coal mining enterprises is large. Development has constrained the development of large-scale enterprises in the industry. Because the local government considers its own interests, it is difficult for external large-scale enterprises to grasp local resources and hinder the development of the coal industry to scale. These problems are the practical problems that must be solved in the development of the coal industry in the Mongolia, Shaanxi, and Gansu region, and should also be the focus of the development of guidance opinions by the relevant departments of the country.

The "2010-2015 China Coal Industry Investment Analysis and Forecast Report" issued by China Investment Advisors pointed out that during the "12th Five-Year Plan" period, the coal industry in the western region will become the top priority for the development of China's coal industry and also the economic construction in the western region. One of the important growth points. However, due to the constraints of transportation conditions, the development of coal resources in the west can only adopt a gradual approach. It is out of this consideration that the Mongolia, Shaanxi, Gansu and Ningxia have become the country's preferred areas for the development of the western coal industry.