China announced it will establish a backup coal production system by 2027 to stabilise prices and secure coal supply, and aims to have 300 million metric tons of “dispatchable” coal production on hand by 2030.
As China produces over 4 billion tons of coal each year, the direct operational impact of creating an additional reserve of around 7%-8% of total output may not be a major challenge for the world’s largest coal miner and consumer.
Pylyp is an experienced private banker and asset manager.