China's ban on new coal mines unlikely to impact surplus capacity

Beijing

CHINA'S decision to stop approving new coal mines for three years has been applauded by green groups, but the move is likely to make barely a dent on the world's biggest coal industry given its vast existing production capacity.

Some estimates suggest China's surplus capacity could be as high as two billion tonnes of coal a year - more than 50 per cent of 2015 output - in a country with nearly 11,000 mines.

Beijing wants to cut the share of coal in its energy mix to contain pollution and meet climate change goals, while it is also trying t…