China’s top planning authority approved more shuttered coal mines to restart production as key policymakers look to balance climate change goals against rising demand for power.
- Coal operations will restart for a year at 15 mines across Northern provinces and are set to deliver around 44 million tons of coal.
- The decision comes as China looks to control thermal coal prices that have risen about a third this year and hit a record high in May amidst supply disruptions and growing demand.
- The regulatory approval comes after last month’s recommendation from top policymakers for an easing of aggressive actions to reduce emissions as the country seeks to fulfill power demand.
Thermal coal futures on the Zhengzhou Commodity Exchange traded 0.5% higher at $138.34 a ton at 11 a.m local time. Officials expect prices to remain high as the power shortage in China is expected to continue worsening.
CSI 300 Index down 0.61%
Source: Bloomberg.