BEIJING -- China has instructed coal miners to expand output in response to an extended power shortage that threatens to upend tech supply chains and risks hampering the country's economic growth.
The government of Inner Mongolia, a major coal producing region, has issued waivers on production caps for 72 coal mines that will last through the end of the month. The mines had been restricted to keep production at about half capacity to greenhouse emissions production targets, but this has been lifted on an emergency basis.
The order comes as China tries to resolve an energy crisis and bring factories to normal capacity. The country has begun to import more power from Russia in addition to walking back trade restrictions on Australian-made coal as ways to boost power.
China consumed about 4 billion tons of coal last year, with the majority of that coming from domestic sources. Fossil fuel accounts for 70% of China's power generation mix, with coal taking the lion's share. An estimated 200 million tons of coal is needed during each winter month.
Inner Mongolia, Shanxi Province and Shaanxi Province have signed contracts to provide a stable supply of coal to coastal provinces, such as Jiangsu and Guangdong, where much of the country's industrial activity is located and hit by power shortages.
The Chinese government is diversifying overseas sources of coal as well. Between January and August, China increased coal imports from the U.S. to roughly eight times the volume from a year earlier.
Imports of Colombian coal nearly tripled during that span. South Africa also exported coal to China, something that did not happen in the year-earlier period.
The government of Inner Mongolia has order this and other coal mines to expand output. China has started tapping stranded imports of Australian coal, according to media reports. Beijing had halted those deliveries due to political tensions, but reports say that vessels that have idled near ports have now received clearance to discharge some of the coal.
Starting this month, State Grid Corp. of China has extended the number of hours Russian-produced electricity will be transmitted to Heilongjiang Province. The daily window has been widened to 16 hours from five hours.
The unusual step was taken to address the power shortage in the northeastern region, which has affected the lives of residents as well as factory operations.
"China will maintain stable industrial and supply chains, ensure electricity supply and livelihoods," Chinese Premier Li Keqiang said last month, indicating a plan to boost coal production.
During the first six days of this month, State Grid, a state-owned enterprise, increased the amount of electricity procured from power companies by 16% from a year earlier, according to Chinese media. Although some manufacturers have announced that they will restart operations this month, it appears that restrictions on power usage will remain in place in several regions.