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This post was last edited by pyp222 on 2017-9-4 at 13:22. **The Development and Reform Commission stated recently that as of the end of June this year, over 400 million tons of coal production capacity had been phased out, accounting for 50% of the 800 million tons target set for the 13th Five-Year Plan period; significant progress has thus been made in reducing coal production capacity. As the reduction of coal production capacity progresses, it also indirectly affects the supply of raw coal for the existing coal chemical production facilities. http://img.yf116.cn/image/img/20170901/163856599364.jpg Recent reports indicate that the National Development and Reform Commission has officially ordered all six coal mines in the Mengdong region to resume production at a total capacity of 92.3 million tons. Among these, the Baorixile mine owned by Shenhua Group will operate at a capacity of 35 million tons per year, the Xilinhe mine owned by State Power Investment Corporation at 15 million tons per year, the Shengli Xi-1 mine at 20 million tons per year, the Shengli Xi-2 mine at 10 million tons per year, another Shengli Xi-2 mine at 6.3 million tons per year, and the Zanihe mine at 6 million tons per year. This news is believed to be effective in alleviating the previous tension between coal chemical industries and coal resources in the Mengdong region. Among them, Datang Duolun Coal Chemical faces a shortage of lignite, with a daily deficit of around 6,000 tons; as a result, the plant is currently operating at reduced capacity. The raw coal used in Datang Dolun’s coal chemical industry mainly comes from Shengli West No. 2 open-pit mine, the lignite from Datang East No. 2 mine, and the bituminous coal from the Ordos region. On May 31, Shengli West No. 2 open-pit mine and Datang East No. 2 mine ceased operations, resulting in difficulties in securing raw coal for the enterprise. According to industry expert Chen Danjiang, the conflict between coal chemical industry development and limited coal resources has become apparent in certain regions of China. Taking the Mengdong region as an example, there are currently a total of **5 brown coal mines in this area**, including **4 mines that have been approved for operation** and one mine that has not been approved but still has the capacity to produce coal. The capacities of the 4 approved coal mines are as follows: Xi San Mine at 20 million tons, Wulantuga Mine at 4 million tons, Dong Er Mine at 10 million tons, and GCL Mine at 1.8 million tons ； 10 million tons from West Mine 2, which has actual mining capacity but lacks approval. The approved production capacity of these mines amounts to 35.8 million tons of lignite, with a total capacity of 45.8 million tons. The actual production in the Xilinhot area in 2016 was less than 35.2 million tons. Due to factors such as collapses during mining at Donger No. 2 Mine and a high stripping ratio, there has been virtually no output in the past two years, and there will not be much output for a considerable period of time to come as well. In the coming period, the actual production volume in the Mengdong region will remain at around 35 million tons. Based on the current actual coal demand in the Mengdong region, a large thermal power plant requires 15 million tons of coal per year, while other industrial projects consume 3 million tons; as a result, only around 17 million tons of coal remain available for coal chemical projects. However, at present, two large-scale coal chemical projects have already been put into operation in the Mengdong region: one is a coal-to-olefins project with an output of 460,000 tons per year, which requires approximately 8 million tons of coal per year ； A coal-to-natural gas project with a capacity of 4 billion cubic meters per year requires approximately 24.5 million tons of coal per year. Just for these two projects, 32.5 million tons of coal resources are required, which is almost equal to the total amount of coal from the currently approved coal mines in eastern Mongolia. It is reported that, for now, the shortage of coal for coal chemical industries in the eastern Mongolian region is just beginning, and it is not an isolated case; similar supply and demand issues will also arise in other regions where coal chemical projects are being developed. If the relevant parties do not pay attention to the balance between coal chemical projects and coal resources, problems will inevitably arise on a larger scale in the future, with consequences that are impossible to estimate.