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15 coal mines in Inner Mongolia suspended production due to overcapacity.
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Release time：2025-09-19
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This decision was made following an inspection launched by the Energy Bureau of the Inner Mongolia Autonomous Region to address the issue of overcapacity.
According to Reuters, Inner Mongolia, China's major coal-producing region, has ordered 15 coal mines to halt operations due to production exceeding their approved quotas. This decision followed inspections launched by the Inner Mongolia Autonomous Region Energy Bureau to address the industry's overcapacity issue. The move aligns with Beijing's efforts to manage production capacity and curb excessive output across the sector.
Reuters has confirmed that a document from the Inner Mongolia Energy Bureau reveals that, in the first half of 2025 (H1 2025), production capacity at 15 mines in Ordos City exceeded authorized levels by more than 10%. The affected mines have been ordered to halt operations and can only resume production after passing safety inspections conducted by local regulatory authorities. However, Reuters reports that the document does not specify when these inspections will take place.
This July, China launched a series of inspections across major coal-producing regions, instructing local authorities to report any mines exceeding their production quotas for 2024 and the first half of 2025. A document reportedly from China’s National Energy Administration called for checks in eight provinces to verify whether coal mines have surpassed their licensed production capacities. The National Energy Administration is part of China’s National Development and Reform Commission, which ultimately set the guidelines for establishing a coal-production reserve system by 2027. This move has triggered heightened market speculation, sending coking coal prices soaring. On the Dalian Commodity Exchange, the most active coal contract jumped nearly 8%, reaching 1,048.5 yuan (US$146.19) per ton—the highest level since March.
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