China’s coal production is set to rise for the sixth straight year to a record 4.4B tons, driven by faster capacity expansions at major mines, China Energy News reported this week, likely causing further declines in coal prices.
While COVID flareups have constrained mining, efforts to guarantee winter supplies may boost production back to a daily record in this year’s final two months, lifting annual output by 8%, according to the official government publication.
Chinese price controls and increasing production have sent spot prices tumbling this week, said an analyst with the China Coal Transport and Distribution Association, according to Mining.com.
Separately, an Australian court blocked a proposal for a huge coal mine Friday, saying the emissions produced by the fuel would threaten human rights.
Peabody Energy (BTU) and Consol Energy (CEIX) are “in a great spot to deliver long-term outperforming shareholder returns, thanks to accelerating free cash flow and falling debt levels,” Leo Nelissen writes in an analysis posted recently on Seeking Alpha.
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