AsiaElec: China moves to invest in long-term coal development
Beijing has announced plans to invest a total of $15.12bn in the nation’s coal-mining infrastructure in its latest move to guarantee a long-term domestic electricity supply.
Announced by the nation’s Central Bank in Beijing, the CNY100bn to be pumped into domestic coal mining will be offered in the form of credit lines to help increase development of existing mining infrastructure in addition to shoring up energy storage facilities.
Reports indicate that these loans will be issued on a monthly basis.
The announcement is being seen in large part as a significant step towards China insuring itself against increasing uncertainties in global coal supply chains at a time prices are on the rise.
Much of the initial investment is being forecast to go on state-of-the-art mining equipment and mine construction substructures to help improve safety records across the industry. Hundreds of miners die each year because of unsafe mining practices across China.
More environmentally friendly mining techniques as well as improved remotely operated underground machinery have also been earmarked as areas on which funds can now be spent.