It is reported that export price for thermal coal at Australia's Newcastle Port, the benchmark price for Asia has achieved USD 200 per tonne for the first time hitting a new record.

Analysts from Citic Securities believe international price keeps rising, spurred by surging crude oil price and deteriorating short supply. Citic Securities added that due to floods in Australia, short electricity supply in South Africa and snowstorms in China, coal price in Asia reaches record highs.

Citic Securities said on July 12th prices for high quality mixed coal from Shanxi broke CNY 1000 per tonne at Qinhuangdao Port. It said that "But the price is still much lower than that in international market. Domestic coal price may climb further."

Mr Zhao Tiechui director of State Administration of Coal Mine Safety, has vowed to strengthen industrial structure adjustment, accelerate the construction of large scale coal bases, raise industry concentration and encourage M&As. China is ambitious to limit small coal mines within 10,000 by 2010.

Mr Wang Shuai analyst for Orient Securities said outputs of small mines kept rising during the past two to three years yet the situation changed since this year. Small mines contribute some one third of China's total output yet most of them have suspended or cut productions. But large scale state owned mines fail to cover the supply shortage.

He said that on the other hand, coal demand now posts strong uptrend as many power plants start operation.