What Is the Coal Mining Industry?

The coal industry refers to an industry dominated by mining coal resources. It is one of the main sources of national energy and one of the important pillars of the national economy. At present, there are many enterprises in the coal circulation industry in China, and the scale is relatively small.

Coal industry

At present, the main coal circulation models in China are as follows:

At present, the total number of coal circulation enterprises in China is about 100,000, which is relatively small. This is mainly due to the relatively scattered distribution of coal production and consumer enterprises in China and the low concentration of the industry, which provides a living space for coal circulation service providers of different sizes. At present, the state is vigorously promoting the integration of coal mining enterprises, and the coal circulation market will also tend to be concentrated. This will gradually increase the barriers to market entry for coal circulation enterprises, and the living space of small-scale coal circulation enterprises will continue to shrink. Large-scale, cross-regional circulation Service providers will become mainstream.

As China's coal production is concentrated in the west and north regions, while coal consumption is concentrated in the east and south regions, and the coal production base is far from the consumption center, China's coal circulation presents a pattern of "western coal transportation to the east" and "north coal transportation to the south". It is long and spans different regions and requires multiple modes of transportation (road, rail, sea, and river) to continue. Therefore, transportation has become a key link in China's coal circulation. China's coal transportation mainly consists of railway, waterway and highway. Railway has become the main mode of land transportation of coal due to its advantages of large capacity, high speed, low cost, and low energy consumption. At present, about 64.3% of coal transportation is by rail, and coal is also the cargo that occupies the largest railway transportation, accounting for about 55.1% of China's railway capacity. In Shanxi, Shaanxi and Mengxi, the main coal-producing "Three West Regions" "On the main transport routes, coal transportation accounts for about 90% of railway capacity. In the future, railways will still play an important role in the transportation of coal. According to the Twelfth Five-Year Plan for the development of the coal industry, in 2015, the national coal railway transportation demand was 2.6 billion tons. Considering the imbalance of railways, ports, production and consumption, railway capacity of 2.8 billion to 3 billion tons is needed. Therefore, being able to obtain stable and sufficient railway transportation capacity is one of the competitive advantages of coal distribution enterprises.

During the 11th Five-Year Plan period of the coal industry

The "Eleventh Five-Year Plan" period is the best period for structural adjustment and industrial transformation of the coal industry. Coal is China's basic energy source, accounting for about 70% of the primary energy mix. The "Eleventh Five-Year Plan" proposal further established the basic strategy of "coal-based and diversified development", which laid the foundation for the prosperity of China's coal industry. During the "Eleventh Five-Year Plan" period, the size of new coal mines will need to be about 300 million tons, of which 200 million tons will be put into production and 100 million tons will be transferred to the "Twelfth Five-Year Plan". China's coal industry will continue to maintain a strong development trend. For a long period of time in the future, the development prospects of China's coal industry will be very broad.

Coal Industry Coal Industry Data

Coking coal prices rose slightly recently

As of November 30, 2012, the price of Datong Youxun (> 6000 kcal) was 680 yuan / ton, which was basically unchanged from last week. Shanxi excellent mixed (> 5500 kcal) offer 635 yuan / ton, basically unchanged from last week. Shanxi Dashun (> 5000 kcal) quoted 545 yuan / ton, basically unchanged from last week. The price of ordinary blended coal (> 4500 kcal) was 445 yuan / ton, which was basically unchanged from last week. Domestic coal prices in Guangzhou Port of Nanxun Port fell slightly this week. As of November 30, 2012, the price of Guangzhou Port coal (5500 kcal) was quoted at 730 yuan / ton, down 5 yuan / ton (-0.68%) from last week. Shanxi Dashun (5000 kcal) was quoted at 630 yuan / ton, down 5 yuan / ton (-0.79%) from last week. Indonesia (5000 kcal) quoted 585 yuan / ton, which was basically unchanged from last week. Vietnam's 11A (4800 kcal) offer was 605 yuan / ton, which was basically unchanged from last week. ^[1]

Coal industry taxes and fees

At present, there are 16 taxes related to the coal industry and 31 administrative fees. The average tax burden level of coal enterprises is about 35%, of which the tax burden is 21%, which is higher than most domestic industries. Only the value-added tax, the comprehensive tax rate of coal enterprises above the national scale is 2-3 times the average level of the domestic industrial industry. Regarding the impact of resource tax reform on coal sales prices, analysts pointed out that the market and prices will remain the most concerned indicators of the industry. As a cyclical industry, the current situation of oversupply in the coal industry is difficult to reverse in the short term. After the reform, even if the tax burden is increased, it will be difficult for coal prices to rise.