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Coal and Mining Equipment

Industry Overview

Coal makes up 70% of China’s energy mix. In addition to coal-fired power generation, coal is critical to the development of China’s metallurgical, building materials and chemical industries. As of 2011, the country held an estimated 128 billion short tons of recoverable coal reserves, endowing China with the third largest supplies in the world behind the United States and Russia. In the same year, China consumed approximately 4 billion short tons of coal, equaling almost half of the world total. Power and heat generation accounts for half of coal consumption, 17% is from metallurgical industry and 15% for cement production. The remaining is for petrochemicals and residential use.

Atypically, the coal mining industry in China has traditionally been somewhat fragmented. As of 2012, the top 10 domestic coal companies produced only 30% of the material mined in China, the rest being extracted by small and medium sized local companies. According to NEA plans, this market share is targeted to rise to around 60%, through the formation of 10 large coal companies and the consolidation of others.

About 90% of coal mining equipment used in China is produced domestically. Chinese companies are developing the capacity to manufacture high-tech mining equipment, such as super-power electric haulage shearers, hydraulic support systems, and armored face conveyers. Nevertheless, most of the mining equipment produced in China still remains 10 to 15 years behind that of other countries with respect to mining efficiency, equipment quality, environmental protection of mines, and safety.

Market Opportunities

Due to an insufficient supply of electricity, China will continue to invest heavily in coal production. Many analysts predict that China will need to invest over $151 billion in coal infrastructure by 2020, creating an average industry growth rate of 4.4% per year. The investment will cover 1) construction of new coal mines and coal bases, with 16 new sites planned to open by 2015; 2) improvement of coal mine safety; 3) clean coal processing technology; 4) coal conversion technology (including coal liquefaction and coal gasification); and 5) Coal-bed methane capture and utilization; 6)any systems and equipment that could help improve mining efficiency; 7) technologies that substantially reduce the impact on environment during the process of mining.

Best Prospects

U.S. companies enjoy their greatest competitive advantage in supplying heavy coal mining machines and systems. U.S. firms compete well in the following categories: long-wall shearers, stage-loaders, continuous miners, batch haulage vehicles, road headers, hydraulic roof support systems, and armored face conveyors. For open-pit mining, U.S. firms have good prospects in the following categories: electric mining shovels, walking draglines, blast-hole drills, and heavy mining trucks.

Coal mine safety remains a critical issue in China. According to the State Administration of Coal Mine Safety Supervision, China is aggressively purchasing safety equipment for large state-owned coal mines. This investment will create significant opportunities for foreign companies to export safety equipment to China. Best prospects include: coal mining safety equipment, security equipment, gas control systems, and fire and gas monitoring and control equipment, as well as green mining and mining efficiency technologies and services.

Regulatory Environment

China’s 12th Five Year Plan (FYP) has emphasized the importance of improving mine efficiency and reducing the environmental impact of resource extraction. To this end, China hopes to achieve 95% mechanization at large coal mines and 80% at medium-sized mines. The industry will see continued consolidation and a push toward bigger, safer and more modern mines. As a result of this push, analysts expect approximately 3000 small coal mines to close by 2015when SOEs will play an even greater role in China’s coal mining industry. This is part of the overall policy goal of increasing efficiency, safety and reducing waste. Policy also favors expanding coal-mine methane projects, consolidating power generation plants, and increase planning in the coal chemicals industry.

Major Shows & Exhibitions

This section provides a listing of upcoming coal and mining equipment-related events in China, including industry shows and trade missions. While FCS China is directly involved with some of these events, the majority here has no direct relationship with the FCS and are listed solely as a convenience to our users.

For more information, please contact the organizing group as listed in the event description. Verify the information before making any commitments - we are not responsible for accuracy of information or changes in events' schedules.

The 10th China International Coal Equipment and Mine Technical Equipment Exhibition, 2014
Dates: June 12-14, 2014
Venue: CIEC - China International Exhibition Center
Website: http://www.ciceme.com

Useful Websites

Links to non-Commercial Service organizations are provided solely as a convenience to our users. The Commercial Service makes no representations about the accuracy or suitability of the information provided on the following web sites. The FCS is not responsible for the content of the individual organization webpages found through these links, and their inclusion here should not be understood as an endorsement of these organizations.

National Development and Reform Commission
State Administration of Coal Mine Safety

China National Coal Association

China Energy Net

Key Industry Contacts

State Coal Mine Safety Supervision Administration
No. 21, Heping Li Beijie, Beijing 100713, China
Tel: (86-10) 6446-3470
http://www.ctcci.org.cn

China Mining Association
No. 2-1002, Shidaizhiguang, No. 45 Xizhimenbeidajie, Beijing 100713, China
Tel: (86-10) 6655-7672
Fax: (86-10) 6655-7672
http://www.chinamining.org

China National Coal Machinery Industry Association
No. 21, Heping Li Beijie, Beijing 100713, China
Tel: (86-10) 6446-3190
Fax: (86-10) 6421-7355
http://www.chinacoal.org.cn

Central Coal Mining Research Institute
No. 5, Qingniangou Road, Hepingli, Beijing 100013, China
Tel: (86-10) 8426-2806
http://www.ccri.com.cn

China Coal Information Institute
No. 35, Shaoyaoju, Chaoyang, Beijing 100029, China
Tel: (86-10) 8461-2550 84657848
http://www.coallinfo.net.cn

U.S. Commercial Service Specialists

The U.S. Commercial Service offers a broad array of market entry services to U.S. companies in the coal and mining industry. Please refer to the following relevant contacts for additional information on how we can help you expand your business in China.

Beijing Office:
Tel: (86-10)8531-3000
Fax: (86-10)8531-3701
Wenjuan Zhan

Shanghai Office:
Tel: (86-21)6279-7630
Fax: (86-21)6279-7639

Scott Yao

Guangzhou Office:
Tel: (86-20)3814-5000
Fax: (86-20)3814-5310
Lena Yang

Chengdu Office:
Tel: (86-28)8558-3992
Fax: (86-28)8558-3991
Ling Chen

Shenyang Office:
Tel: (86-24)2322-1198
Fax: (86-24)2322-2206
Yang Liu

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