Beijing orders coal mines to boost output

Beijing has given orders to the coal mines of China to boost their output. The country is facing an energy shortage. Millions of homes and businesses are dealing with power cuts.

Three major coal-producing provinces of China have taken the pledge to increase their production. Several provinces across the country have been suffering from blackouts since the middle of last month.

The demand for electricity across the country is soaring as the nation is emerging from lockdowns.

The Inner Mongolia region of North China has said that more than 70 mines will boost their annual output capacity up to 100 million tonnes.

This area is the second-largest holder of coal mines in the country. However, the proposed increase in the output of 100 million tons would amount to somewhere near 3% of the total annual thermal coal consumption of China.

This move is the latest attempt of the authority to increase the coal supply of the country. The price of coal has hit record highs. The electricity shortages are also forcing the energy firms to ration their power in large parts of the country.

Last week the state planner of China, the National Development and Reform Commission, called on mining companies and power firms. It called them to sign up for a new agreement to resolve all these problems.

In the last month, a series of power cuts have caused the factories to cut back their production or to stop the operations completely.

All the manufacturing hubs in the northeast of China are facing a much harder hit. In recent weeks the shortage in energy has raised various concerns in countries around the world. Countries like the UK, India, and Mainland Europe are facing such problems.

UK consumers are having warnings that their household energy bills are all set to rise. The price is surging in the wholesale market. India is also on the brink of an unprecedented crisis for energy. The power suppliers for the country are struggling to secure enough calls to meet the surging electricity demand.

Credits: BBC