Fed up with the high price of coal, which makes up more than 69% of China's energy matrix, China's National Energy Administration intends to create a legislative framework to create and manage a strategic coal reserve.

    The plan is now undergoing public consultation review under the auspices of the China National Coal Association (CNCA) and the China Coal Information Institute.

    Huang Shengchu, president of the Coal Information Institute, told China Daily that setting up the strategic coal reserve tops the list of 10 proposals contained in the revised coal legislation. The amended Law on the Coal Industry will specify how many coal reserve sites should be created and their size, according to Huang.

    It has not been specified whether the national coal reserve will be spot or resource, a China National Coal Association source told China Daily it will be mainly a resource reserve. The strategic reserve will also include rare types of coal, according to the CNCA source.

    The coal reserve legislation will also establish a Chinese legal system for coal, "which aims to develop a framework to ensure sustainable development of the industry," China Daily reported.

    About 75% of China's coal supply is utilized in domestic power generation.