XFN-Asia reported that China's freeze on approvals of new coal prospecting licenses has been extended for another year in an effort to make coal miners develop more reserves in blocks already awarded.

Mr Jia Qihai director of the resources department of the ministry of land and resources said that extending the freeze introduced in 2007 will have the effect of bringing more projects quickly to the exploration and production phase. He said the decision also takes into account the balance of supply and demand.

According to the National Bureau of Statistics China produced 2.29 billion tonnes of coal in 2007 up by 9.4% YoY.