The Future Market for China's Coal

In China there is a two-tiered coal production system: first, there are about 600 coal mines in 80 coal-mining administrations under the direct jurisdiction of the Ministry of Coal Industry, the government agency in charge of the nation&s;s coal industry. Second, there are local mines operated by the provincial, municipal, prefectural, or county authorities, in addition to small coal mines owned collectively or privately. In 1985, industry consumed 76.4 percent of the available coal in China. The government is considering price reform for coal. It is hoped that a more reasonable coal pricing system will be implemented in the near future. China restricted its coal exports before 1985 because of its tight domestic market; however, coal exports have been encouraged in order to compensate for foreign investment and long-term trade agreements with some countries. To satisfy the increasing demand for high-quality coal both at home and abroad, the percentage of coal that can be washed must be greatly increased.