• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 11 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 1 day Wind droughts
  • 5 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 3 days Oil Prices Fall After Fed Raises Rates
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 11 days "Russian oil executive and Putin critic Ravil Maganov dead after mysterious six-story fall" - The New York Post
  • 12 days How Far Have We Really Gotten With Alternative Energy
  • 2 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 7 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 10 days The Federal Reserve and Money...Aspects which are not widely known
Can South Africa Kick Its Coal Addiction?

Can South Africa Kick Its Coal Addiction?

Over 80% of South Africa’s…

Coal Is Staging A Major Comeback

Coal Is Staging A Major Comeback

The “dirtiest fossil fuel” is…

Could Nuclear Power Help Poland Kick Coal?

Could Nuclear Power Help Poland Kick Coal?

Pennsylvania-based nuclear giant Westinghouse is…

MINING.com

MINING.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

More Info

Premium Content

China Approves Mega-Merger Of Two Coal Giants

China has approved the merger of two of Shandong province’s top state-owned coal miners, Shandong Energy Group and Yankuang Group, a decision that effectively creates a new top company in the world’s top producer and consumer of the fossil fuel.

The combined company, China’s second-largest coal producer after China Energy Investment Corporation (CEIC), will operate under the name Shandong Energy Group.

It’s expected to account for close to 7% of the country’s total coal output

Gewin Ho, a Moody’s vice president and senior credit officer, said that because the combined group will derive most of its businesses from coal mining, its credit profile will remain constrained by significant carbon transition risk and by its exposure to coal-price volatility.

“While support from the Shandong Provincial Government should remain forthcoming, it will be constrained by the predominantly commercial and competitive businesses of the combined group,” Ho said in a July note to investors.

The merger of Yankuang and Shandong Energy comes as China forges ahead with the reform of its stated-owned enterprises. The newly merged company will further increase its competitiveness on the market as it will have a whole industrial chain integrating coal production, coal-fired power plants and coal chemicals, International Energy Agency’s analysts said in July.

Coal for years

Other Chinese coal-producing provinces are pushing for similar consolidations to improve efficiency. The government of Shanxi, the country’s second biggest coal-producing province, approved earlier this year the merger of state-controlled producers Shanxi Coal Import Export and Shanxi Coking Coal. Related: Lithium-Ion Battery Production Set To Quadruple This Decade

Despite global efforts to abandon the use of coal, the most polluting fuel, China has continued to rely on the ubiquitous and low-cost commodity. This has put coal on a dominant position in the country’s power sector, accounting for almost 58% of the nation’s energy use last year.

Coal plants, which burn close to 54% of all coal used in the country, provide 52% of generating capacity and 66% of electricity output — down from a peak of 81% in 2007.

China will adopt next year its 14th five-year-plan, which will provide a roadmap for the country’s political and economic priorities through 2025.

State-run National Center for Climate Change Strategy has advocated for that plan to include hard caps on carbon emissions. Premier Li Keqiang, director of the National Energy Commission, which determines China’s energy policy, has a different idea. Last year, he spoke of the need to “promote the safe and green mining of coal and the clean and efficient development of coal power.”

By Mining.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News