Order to produce more coal

Chinese coalmines have been ordered to increase production by tens of millions of tonnes before the end of the year as President Xi Jinping prioritises a power crisis over reducing Beijing’s dependence on fossil fuels.

Unrest is growing over a crippling power shortage that has prompted state-owned energy firms to limit supplies to millions of homes and businesses. The price of coal has surged to record highs as Shanxi, a mining region that accounts for about a third of the country’s coal, was hit by flooding.

The increased production at mines is likely to mean that China fails to meet its target of using coal for only 56 per cent of its energy needs. Last year coal accounted for 56.8 per cent of usage.

Chinese Premier Li Keqiang convened a meeting last week of the National Energy Commission, telling suppliers they must keep people warm during winter. He indicated reducing consumption and meeting climate change targets would have to “take into account the recent gaps in the supply and demand of electricity and coal”.

The power shortage has caused factories to halt assembly lines.