China: 150 MnT of Coal Capacity to be Cut in 2017

In China, at least 150 MnT of coal production capacity will be shut-down in 2017.

Towards the goal, several coal provinces have unveiled their respective production cuts, according to Chinese media reports.

The major provinces, Shanxi, Henan and Guizhou will reduce their capacities by 20 MnT, 20 MnT and 15 MnT respectively, while the capacity cuts by other provinces were not disclosed by the media.

Along the same lines, the Chinese government will also eliminate around 50 GW of coal-fired power generating capacity in this year. China is becoming aggressive in using renewable sources for generating power. At the same time, 50 MnT of steel production capacity will also be cut.

In 2016, 290 MnT of coal capacity was put off-line, while, 65 MnT of steel production capacity was eliminated.