China to transform coal industry

China has unveiled an ambitious 7-year plan to transform its coal industry, with foreign assistance, into an efficient source of low-pollution fuel.

The plan, outlined in Beijing by Coal Industry Minister Wang Senhao, includes an 800-km pipeline to transport liquefied coal to Shandong province from the coal-rich province of Shanxi, Agence France Presse reports. American and Chinese experts have begun a joint study of the pipeline which will be built with U.S. funds and technology.

In addition, operators of Chinese coal mines, which used to fulfil limited state quotas, will now be allowed to set up combustion plants and build railways, the minister said.

During the next seven years, demand for coal in China is expected to reach 1.4 billion tonnes per year, compared with current output of 1.2 billion tonnes.

Eighteen mines will enter production this year, producing 32 million tonnes. Foreign countries, including Japan, the U.S., France and Sweden, have so far invested US$4 billion in the Chinese coal industry.

More than three-quarters of China’s energy derives from coal, which has created major pollution problems and bottlenecks on the country’s rail network.