Industry Overview
China is heavily reliant on coal, which accounts for 69% of the energy mix. This is the result of an abundance of coal reserves in China, estimated at 115 billion metric tons. Shanxi and Shandong are particularly rich in coal and account for some 50% of overall coal production. In 2006, China’s verified exploitable reserves accounted for 13% of the world total, ranking China third globally. China is the world’s largest coal producer, accounting for nearly 28% of the world’s annual production. In 2007, China’s coal production reached 2.37 billion metric tons, an 8% increase.
About 90% of coal mining equipment used in China is produced domestically. Chinese companies are developing the capacity to manufacture high-tech mining equipment, such as super-power electric haulage shearers, hydraulic support systems, and armored face conveyers. Nevertheless, most of the mining equipment produced in China still remains 10 to 15 years behind that of other countries with respect to mining efficiency, equipment quality, environmental protection of mines, and safety. U.S. coal mining equipment manufacturers and coal mine investors have prospects for long-term opportunities in China’s coal industry.
Market Opportunities
Because of the continued importance of coal in quenching China’s thirst for energy, improving cleanliness of coal extraction and combustion is critical to reducing overall emissions. Clean energy-efficient products that are needed in this sector include: coal beneficiation products, coal mine methane extraction technologies, gas turbines, circulating fluidized bed boilers, pollution control technologies such as desulphurization technologies, and coal conversion technologies such as advanced pulverized coal gasifiers.
Due to an insufficient supply of electricity, China will continue to invest heavily in coal production. Many analysts predict that China will need to invest over $151 billion in coal infrastructure by 2020. The investment will cover the following areas:
- Construction of new coal mines and coal bases
- Improvement of coal mine safety
- Clean coal processing technology
- Coal conversion technology (including coal liquefaction and coal gasification)
- Coal bed methane development and utilization
In order to improve mine management and to increase coal production, the Chinese government has established new policies to encourage foreign investment. This shift in policy has included granting foreign companies the rights for mineral geological exploration.
Best Prospects
U.S. companies enjoy their greatest competitive advantage in supplying heavy coal mining machines and systems. For underground mining, U.S. firms compete well in the following categories: longwall shearers, stageloaders, continuous miners, batch haulage vehicles, road headers, hydraulic roof support systems, and armored face conveyors. For open-pit mining, U.S. firms have good prospects in the following categories: electric mining shovels, walking draglines, blast hole drills, and heavy mining trucks.
Coal mine safety remains a critical issue in China. In 2007, China suffered 3,786 coal mine accidents resulting in fatalities. In order to address the issue of safety, the Chinese government closed 2,969 small coal mines in 2007 (below 30,000 tons of production capacity) that the government determined were unsafe. According to the State Administration of Coal Mine Safety Supervision, China will invest $6 billion over the next several years to purchase safety equipment for large state-owned coal mines. This investment will create significant opportunities for foreign companies to export safety equipment to China. Best prospects include: coal mining safety equipment, security equipment, gas control systems, and fire monitoring and control equipment.
Major Shows & Exhibitions
This section provides a listing of upcoming coal and mining equipment-related events in China, including industry shows and trade missions. While FCS China is directly involved with some of these events, the majority here have no direct relationship with the FCS and are listed solely as a convenience to our users.
For more information, please contact the organizing group as listed in the event description. Verify the information before making any commitments - we are not responsible for accuracy of information or changes in events' schedules.
China International Coal Equipment and Mine Technical
Equipment Expo
June 11-13, 2008
Beijing
http://www.ciceme.com
Xinjiang International Coal, Minerals and Exploration
Technology & Equipment Expo
July 22-24, 2008
Xingjiang
http://www.xjicme.com.cn
Ningxia International Coal and Energy Industry Equipment
Fair
July 24-26, 2008
Ningxia
http://www.nxea.com
China Yulin International Coal and Mining Industry
Expo
September 01-03, 2008
Yulin
http://www.cinn.com
China (Taiyuan) International Coal and Energy New Industry
Exhibition
September 16-19, 2008
Taiyuan
http://www.cicenexpo.com
China Coal Exhibition 2008
November 4-7, 2008
Beijing
http://www.coal-china.org.cn
Useful Websites
Links to non-Commercial Service organizations are provided solely as a convenience to our users. The Commercial Service makes no representations about the accuracy or suitability of the information provided on the following web sites. The FCS is not responsible for the content of the individual organization webpages found through these links, and their inclusion here should not be understood as an endorsement of these organizations.
National Development and Reform Commission
State Administration of Coal Mine Safety
China National Coal Association
Key Industry Contacts
State Coal Mine Safety Supervision Administration
No. 21, Heping Li Beijie, Beijing 100713, China
Tel: (86-10) 6446-3470
http://www.ctcci.org.cn
China Coal Industry Association
No. 21, Heping Li Beijie, Beijing 100713, China
Tel: (86-10) 6446-3371
http://www.chinacoal.org.cn
China Mining Association
No. 2-1002, Shidaizhiguang, No. 45 Xizhimenbeidajie, Beijing
100713, China
Tel: (86-10) 6655-7672
Fax: (86-10) 6655-7672
http://www.chinamining.org
China National CoalMachinery Industry Association
No. 21, Heping Li Beijie, Beijing 100713, China
Tel: (86-10) 6446-3190
Fax: (86-10) 6421-7355
http://www.chinacoal.org.cn
Central Coal Mining Research Institute
No. 5, Qingniangou Road, Hepingli, Beijing 100013, China
Tel: (86-10) 8426-2806
http://www.ccri.com.cn
China Coal Information Institute
No. 35, Shaoyaoju, Chaoyang, Beijing 100029, China
Tel: (86-10) 8461-2550 84657848
http://www.coallinfo.net.cn
U.S. Commercial Service Contact Information for Coal and Mining
The U.S. Commercial Service offers a broad array of market entry services to U.S. companies in the coal and mining industry. Please refer to the following relevant contacts for additional information on how we can help you expand your business in China.
Beijing Office:
Tel: (86-10)8529-6655
Fax: (86-10)8529-6558/9
Bryan Larson
Mingming Ma
Shanghai Office:
Tel: (86-21)6279-7630
Fax: (86-21)6279-7639
Eric Hsu
Scott Yao
Guangzhou Office:
Tel: (86-20)8667-4011
Fax: (86-20)8666-6409
Lena Yang
Chengdu Office:
Tel: (86-28)8558-3992
Fax: (86-28)8558-3991
Cui Shiyang
Shenyang Office:
Tel: (86-24)2322-1198x8142
Fax: (86-24)2322-2206
Liu Yang