Strategies for Highly-Efficient Recovery of Coal Resources in China

"Since entering the new century, China’s coal industry has witnessed the rapid development, and provided a reliable energy supply for the national economic and social development. But after the “golden decade” of rapid development, the coal industry now is facing overcapacity, low industrial concentration and production efficiency, high pressure of production safety and environmental protection and other prominent issues. Based on defining the connotation of highly-efficient recovery of coal resources, this paper established the relevant 8 indicators to reflect the highly-efficient recovery level of coal resources, summarized the present situation of China's coal resources recovery and the main problems, analyzed the development environment of China's coal industry under the new situation, and finally put forward the strategic measures to promote highly-efficient recovery of coal resources in China.1. Background Coal is the main energy in China. Since entering the new century, China's coal industry has made significant progress, and the level of production safety, resource recovery rate and mining mechanization increased significantly, which provided a reliable energy supply for the rapid development of the national economy. However, due to the changes of China's economic environment, slow growth of energy demand and other factors, some prominent contradictions in the coal industry have significantly restricted the healthy development of the industry. The first problem is serious overcapacity. In the past few years, 16 industries including coal, electric power, chemical and others have invested in coal mines. It is reported (Han 2016) that only during the nine years from 2005 to 2014, the fixed assets of coal industry increased totally more than 3.3 trillion RMB, which brought a large number of production capacity. Affected by the slowdown of economic growth and energy structure adjustment, Chinese coal demand has reached the peak platform and caused the overcapacity of coal supply, so shutting down the backward capacity is the most important task in the future. The second problem is the low efficiency of coal production. There are about 4.3 million coal mine workers in China, and the annual coal production per capita is less than 900 tons, while it was reported (EIA 2016) that the annual production per capita in the United States is more than 10 thousand tons. The third problem is that the green coal resources are not rich. Among the 1.53 trillion tons proven reserves, only about one third are green coal resources in accordance with the principle of ""safety, technology, environment and economy"". The coal resources with high quality and easily mining conditions are not abundant."