China is the third biggest country of coal resources in the world and its annual coal output and consumption rank number one in the world. Coal industry is the basic industry in China, which is regarded as “The Motive Force of national economy” and “Industry Food”. Coal industry plays an important role in the construction of Chinese economy and the development of the society.

China coal industry has kept good development trends in recent years. Coal market is in great increase, the annual output result a record-breaking. But there are still many places where the demands exceeding supply. It is estimated that the coal output will be 1.55 billion tons with export hitting 90 million tons in 2003. The coal output will be 1.6 billion tons in 2005, and 1.8 billion tons in 2010. If Chinese national economy keeps the rapid development trends as the present, there will be great increase of coal output, sales and exports in the coming several years.

According to the feature of China primary energy deposit in which coal exceeds 90%, the rate that coal takes in the structure of primary energy consumption will be over 50% in the coming 30-50 years. China coal industry’s rapid developments benefit from the rapid increase of national economy. The demands and outputs of the main coal consumption products, such as power, steel, cement, chemistry have kept great increase recent years. In order to meet the rapid development of national economy, Chinese government is planning to build or enlarge some modernized mines and coal-preparation plants. It is estimated that the invest will exceed 300 billion RMB in the next 5 years. The main mines are:

• Shanxi-Datong Mining District Tashan Mine (15 million tons)
• Yangquan Mining District Hanzhuang Mine (6 million tons)
• Shouyang Mine (6 million tons)
• Lu’an Mine District Tunliu Mine (6 million tons)
• Jincheng Mine District Zhaozhuang Mine (6 million tons)
• Anhui – Huainan New District (30 million tons)
• Xinji Mining District Xinjisan Mine (5 million tons)
• Henan _Pingdingshan Mining District Shoushanyi Mine (3 million tons)
• Shandong – Xinwen Mining District Longgu Mine (5 million tons)
• Guizhou – Panjiang Mining District Xiangshui Mine (10 million tons)
• Shaanxi – Binchang Mining District (10 million tons)

In order to cater for the needs of international competitive situation after China’s accession into WTO, China mining industry has been closing with international mining industry step by step. Mining enterprises have been struggling to enhance the international competitive capability. The form of operation has been changing from traditional extensive style to modernized management. China is planning to build some large mining group corporations with international competitive capability besides some groups that have been built, such as, Shenhua Mining Group, China National Coal Group Corp., Shanxi Coking Group, Datong Coal Mining Group and Yanzhou Mining Group. These modernized mining districts will introduce foreign investment, cooperate with foreign coal mining corporations, import the latest technologies and equipments, and build into a large comprehensive mining group that will be engaged in coal production, mine-site power, coal chemistry, electrolysis aluminum production, railroad transportation and multi-management.