With the reduction of high-quality coal resources, the production capacity of PLV HCC coal mines in China has shown a downward trend year by year in recent years. Fenwei Coal Mine Database tracking data shows that as of the end of 2023, the production capacity of PLV HCC coal mines in China was 53.7 million tons, a decrease of 4.65 million tons or 8% compared with 2019. The main reason for the decline in production capacity is that some mines are facing depletion of PLV HCC resources. Some mines have switched to mining other coal seams, and some mines have slowed down their mining progress to mine other coal seams.
Take Shanxi as an example: The 2023 work summary of Liulin County Government in Shanxi Province mentioned that Liulin Coal Mine will increase the mining of No. 8 coal seam and No. 5 coal seam, the Nahagou Coal Mine will change the mining of No. 9 coal seam, and the Xingwu Coal Mine will Coal level extension project; according to Fenwei’s research, the coal quality of some mines in the Huodong mining area of Shanxi Province has deteriorated, and some mines have switched to high-sulfur coal; some coal mines in the Xiangning mining area of Shanxi Province are also facing depletion of 2# coal.
There will be no new investment in PLV mines in the country in 2024. With the above-mentioned resource depletion issues and the complete withdrawal of distribution mines from the ranks of PLV, it is expected that PLV coal mine production capacity will continue to decline by the end of 2024.
PLV HCC resources are mainly distributed in Shanxi, Anhui, Hebei and Heilongjiang. In terms of mining areas, they are mainly distributed in the Permian Shanxi Formation 4# and 5#, in the Liliu Mining Area, Shanxi; the 2# and 3# Permian Shanxi Formation in the Huodong Mining Area; the 2# Permian Shanxi Formation in the Xishan Mining Area and the 2nd Permian Shanxi Formation in the Xiangning Mining Area; 2# of the Shanxi Formation of the overlapping series; 8# and 10# of the Shihezi Formation of the Permian in the Huaibei Mining Area of Anhui; 2# of the Permian Shanxi Formation of the Fengfeng Mining Area of Hebei; and 62# of the Cretaceous Chengzihe Formation of the Qitaihe Mining Area of Heilongjiang.
In this article, PLV HCC refers to coking coal with volatile content less than or equal to 23.5%, sulfur content less than or equal to 0.8%, and thermal strength greater than or equal to 65.
Source: Sxcoal
