China Issues 15th Five-Year Coal Industry Plan, Tightens Resource Access and Phases Out Outdated Capacity
The National Development and Reform Commission and the National Energy Administration issued the 15th Five-Year Plan for Coal Industry Development, which raises resource development access standards and promotes the orderly exit of outdated coal mines by region. Western regions will accelerate elimination of poorly equipped mines and those overlapping ecologically sensitive areas, while eastern and central regions will steadily close disaster-prone, uncontrollable and depleted mines with proper handling of legacy issues and worker resettlement.
The National Development and Reform Commission and the National Energy Administration issued the 15th Five-Year Plan for Coal Industry Development. The plan proposes raising resource development access standards, adhering to the principle of establishing the new before abolishing the old, coordinating coal mine closures with regional supply security, and promoting the orderly exit of outdated-capacity coal mines in accordance with market-based and rule-of-law principles.
In the western regions, the production structure will be optimized, with accelerated elimination of coal mines featuring poor technology and equipment as well as those overlapping with ecologically sensitive areas. In the eastern and central regions, the exit of mines with severe hazards that cannot be effectively controlled and mines with depleted resources will be steadily advanced, with proper handling of legacy issues and adequate arrangements for worker resettlement.
Why this event matters
The event has a measured impact on 1 industry. The strongest current signal is mixed for Coal, with intensity 72/100 and 80% confidence over a medium term horizon.
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