China ban on low-grade coal set to hit global miners
The world’s miners, already smarting from a steep drop in iron ore prices, are about to be hit by a Chinese ban on low-quality coal that comes into effect next year.
The National Development and Reform Commission, China’s state planner, has banned the burning of coal with ash content of more than 16 per cent or sulphur content of more than 1 per cent from 2015 in populous and prosperous eastern cities that are the focus of national efforts to fight air pollution.
The new regulations ban the mining or import of low-grade coal with ash content above 40 per cent or sulphur content above 3 per cent. They restrict the transport of coal with ash content of more than 20 per cent or sulphur content of more than 1 per cent.
Daniel Morgan, analyst at UBS in Sydney, said many Australian exporters that did not meet the new specifications could respond by washing or blending coal. “This would require a massive sampling and compliance regime in China in order to be implemented,” he added.
Source: FT- China ban on low-grade coal
