The "Twelfth Five-Year Plan" of Coal Industry Expands the Development Space of Related Companies

The reporter recently learned that the draft of the “Twelfth Five-Year Plan” for the development of the coal industry led by the National Energy Administration has just been released in May. According to the plan, China’s coal mine construction will control the eastern part during the “Twelfth Five-Year Plan” period, stabilizing In the central region, the development of the western region, especially in Inner Mongolia, will account for 26% of the country's total. The plan also indicates that priority will be given to the construction of large-scale open-pit mines. At the same time, protective development of high-quality coking coal and anthracite resources has been implemented. In the coal transportation channel, the collection line responsible for the transportation of Mongolian coal will be greatly expanded, and the Mengyu line will also be completed, which will greatly release Inner Mongolia’s coal production capacity.

Analysts analyzed that new production capacity will focus on the planning of Mongolian coal, priority construction of open-pit mines, and the expansion of Mongolian coal outbound channels, which are expected to benefit the open-pit coal industry, Pingzhuang Energy, and two listed companies; It will benefit from the coking coal and anthracite protective development and the expansion of coal transportation channels. China Shenhua will benefit from the integration of Shaanxi's coal resources and the expansion plan for coal transportation channels.

Devoting Major Efforts to Developing Large-scale Open-pit Mines

According to the plan, by 2015, the coal output will reach 3.79 billion tons, an increase of 550 million tons from 2010, and the national coal production in 2010 will be 3.24 billion tons, an increase of 890 million tons from 2005. In other words, the increase in coal production during the “12th Five-Year Plan” period was significantly lower than that in the “Eleventh Five-Year Plan” period.

In the case of a significant reduction in production, the focus is on coal production in the western region, especially in Inner Mongolia. Because according to the principle of overall layout of the plan, it will control the eastern part, stabilize the central part, and develop the western part. In the eastern part of the country, the depth of exploration will be controlled at a shallow depth of 1,200 meters, and the new well construction will be controlled at a shallow depth of 1,000 meters. For the key mining areas in the central part, the construction of deep wells will also be limited to 1,000 meters.

For the western region, it will vigorously promote the integration of resources such as Shendong, North Shaanxi, Huangpi and Ningdong, as well as the exploration work of planned mining areas. It is worth noting that the exploration of brown coal resources in Mengdong will focus on key projects, and the integrated development of coal-fired power projects will be implemented in the Mengdong brown coal mine area, with priority given to the construction of large-scale open-pit mines with a focus on supplying northeastern China.

The plan emphasizes that the construction of new wells will be dominated by large-scale modern coal mines, and priority will be given to the construction of large-scale open-pit mines, extra-large mines, and coal-electricity integration projects.

It is worth noting that from the perspective of newly started production capacity, the plan determines that the new construction scale of the “Twelfth Five-Year Plan” will be 500 million tons/year, plus the scale of construction carried forward during the “Eleventh Five-Year Plan” period, and the final scale of production and commissioning will be 550 million tons/year. In the past year, Inner Mongolia received a capacity index of 130 million tons per year, which accounted for 26% of the total. This is a key concern. Second, Shaanxi and Shanxi respectively.

The expansion of the Mongolian coal outbound channel

A person in charge of the Coal Department of the Inner Mongolia Energy Bureau told a reporter a few days ago that “at the end of 2010, Inner Mongolia’s coal production reached 786 million tons, ranking first in the country. At the end of the 12th Five-Year Plan, reaching 1 billion tons is not a problem. The key question is how Local conversion and delivery."