August 28, 2008

Henan to add 4.8 million tonne of coal capacity this summer

Xinhua reported that central China's Henan province would work hard to raise coal capacity by 4.8 million tonnes in 2008 to ease thermal coal shortfalls this summer.

It's learned that the province would confront the severest electric power shortfalls unseen in recent years in this summer due to the under supply of thermal coal, uncertainties in generating capacity and the Olympics.

Thermal coal inventories in the province have shown a downtrend since middle March with total reserves for power plants lingering at some 2.4 million tonnes, which can sustain the province's power generation for less than 10 days.

It's forecasted that 3.4 million tonnes of thermal coal reserves are the bottom line for the province to maintain normal power supplies, however, inventories at present are far behind the level.

Henan Coal Industry Admins Bureau noted that it will accelerate construction work at new mines to ensure thermal coal supply increases.