Major Mines Threatened by Reduced Chinese Coal Demand

Reuters reported that many coal mine investments over the past 10 years were driven by Chinese demand for the fuel. As a result, the country’s plan to address pollution is now threatening major coal projects in locations such as Australia, Indonesia and Mozambique.

As quoted in the market news:

‘China is kicking its coal addiction,’ said Chen Yafei, vice-director at the China Coal Research Institute. ‘With slower economic growth and a big push towards gas and renewables, the golden decade for coal is over.’

China’s coal imports grew by 17 percent in the first 10 months of the year, down by nearly half from the 30 percent in 2012. With weak demand and high domestic output, inventories have been stuck at record high levels of 300 million tonnes most of this year.

Click here to read the full Reuters report.