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Experts comment on province's coal industry
(China Daily)
Updated: 2008-09-17 09:48
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    Cheng Siwei, former deputy chairman of the Standing Committee of the National People's Congress:


    "As a giant energy producing and consuming country, China has seen a rapid development in both energy output and consumption in recent years. Last year, energy output equaled to 2.37 billion tons of standard coal, but consumption reached 2.65 billion tons. Similarly, growth rate of energy consumption was also higher than that of production last year.


    "Coal accounts for 76 percent of the total production, and about 70 percent of the total consumption in the country's energy mix.


    "Shanxi, as a major base for the country's coal output, should not just depend on its coal production, because the low added-value and difficulties in coal transportation pose major obstacles for future development.


    "Instead, Shanxi should further develop its coal chemical industry to transform coal into products with higher added value, such as methanol or other oil substitutes.


    "Meanwhile, it is also important for the province, as well as the whole country, to use more financial instruments, such as futures, to insure a sound and stable energy market.


    "Strengthening and improving the technology research and developing the country's own system of intellectual property are also of crucial importance for the future."Shen Lianbin, vice-governor of Shanxi province:


    "Shanxi province is the country's major coal and energy base. The coal production capacity of Shanxi accounts for one third of China's total, while its annual outside-the-province transportation volume of coal accounts for three-fourth of country's total. The annual export volume of Shanxi's coal accounts for 50 percent in China and the export volume of coke accounts for 45 percent of global trade volume. Coal bed methane reserves in Shanxi are one-third of China's total.


    "But the province is still facing some problems. The pillar industry is not diversified enough. The industrial structure needs further improvement. The environmental and ecological problems from coal mining also cause concern.


    "To address such problems, Shanxi is striving to build the new energy and coal chemical industry base of China."Matumura, officer of Ministry of Economy and Industry of Japan:


    "The cooperation and exchange between Shanxi and Japan has a long history. With the growing demand for energy, rising price and a decrease in non-renewable resources reserves, the utilization of coal resources in a scientific and reasonable way becomes a must.


    "Japan will strengthen its cooperation with Shanxi in the fields of energy conservation and environmental protection, promoting more investment in the province, and further implement joint projects discussed at the Forum on Japan-China Energy Conservation and Environmental Protection held in November 2007."Gao Hucheng, vice-minister of commerce:


    "To ensure global energy security, the international society needs to develop and implement a new energy security concept that calls for mutually beneficial cooperation and diversified forms of development.


    "China adheres to the following principles and concepts on the energy development: first, giving priority to thrift and energy conservation. The country has outlined a five-year goal to save energy consumption up to 20 percent from 2006 to 2010.


    "Second, besides development of coal and oil production, the government is also encouraging diversified energy models, especially renewable energy sources.


    "The country will further strengthen its scientific researches to tackle the technological bottlenecks in energy development, as well in energy conservation technologies.


    "China has also set the goal of building a resource-conserving and environmentally friendly society, and is endeavoring to coordinate energy development with environmental protection.


    "The country will also contribute to ensure the world energy security through international cooperation."Zhou Dadi, deputy-director of the China Energy Research Society:


    "The modernization level of China's coal industry is still quite low at the moment. A large number of coal mines in China cannot meet the standards of safety, high efficiency and modernization. Labor productivity, mechanization and automation in China's coal industry are all relatively low compared to the advanced level in the world.


    "Compared with some developed countries, China's coal industry still lags behind. Statistics show that the total number of employees working in the coal industry in China is about 5.5 million, with lower per capita coal output, higher labor intensity and occurrences of safety accidents.


    "A safe, highly efficient and modernized system is crucial to ensure the long-term sustainable development of the coal industry.


    "Market instruments, such as rationalizing the country's coal pricing system and levying fees for resource use will help the country to solve the current problems and boost a sound development of energy sector."

 
 

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