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China calls for coal transportation to be strengthened to secure supply By Reuters


© Reuters. FILE PHOTO – A factory can be seen in China’s Inner Mongolia Autonomous Region behind a coal-burning power station. October 31, 2010. REUTERS/David Gray/File Photo

BEIJING (Reuters) – China’s top economic planner said on Wednesday that railway companies and local authorities should strengthen coal transportation in key areas including the northeast region and ensure stable supply for power generation.

The National Development and Reform Commission, along with local energy authorities and railway companies, sent a note to the concerned to urge them to improve coal transportation in order to provide enough heating for residents during winter.

The NDRC stated that local economic planning offices should promote medium-to-long-term thermal coal supply agreements with guaranteed transport capacity.

The NDRC stated that each railway company must strengthen coal transport to powerhouses with inventories of less than seven day and immediately launch an emergency supply mechanism.

This notice is issued as the second largest economy in the world faces a power crisis. It has caused major disruptions in the industrial sector and has also affected the residents of northeastern regions.

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Railway companies were asked by the state planner to ensure that coal transport was secured in the key regions of production, including Shanxi Shaanxi and Inner Mongolia, as well as in the northeastern provinces. They also requested priority be given to the transportation for heating and power generation.

The state planner also asked local governments to monitor coal supply and demand at power plants.

In early trading on Wednesday, the most traded thermal coal futures at Zhengzhou Commodity Exchange jumped 6.9% to 1,377 Yuan ($8,903.98) per troy tonne.

($1 = 0.1547 renminbi)

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