## Coal and Mining Equipment 

### INDUSTRY OVERVIEW 

China is heavily reliant on coal, which accounts for 69% of the energy
mix. This is the result of an abundance of coal reserves in China,
estimated at 115 billion metric tons. Shanxi and Shandong are
particularly rich in coal and account for some 50% of overall coal
production. In 2006, China verified exploitable reserves accounted for
13% of the world total, ranking China third globally. China is the
world's largest coal producer, accounting for nearly 28% of the world's
annual production. In 2007, China's coal production reached 2.37 billion
metric tons, an 8% increase.

90% of coal mining equipment in China is produced domestically. Chinese
companies are developing the capacity to manufacture high-tech mining
equipment, such as super-power electric haulage shearers, hydraulic
support systems, and armored face conveyers. Nevertheless, most of the
mining equipment produced in China still remains 10 to 15 years behind
that of other countries with respect to mining efficiency, equipment
quality, environmental protection of mines, and safety. U.S. coal mining
equipment manufacturers and coal mine investors have prospects for
long-term opportunities in China's coal industry.

### MARKET OPPORTUNITIES: 

Coal plays an integral part in the Chinese economy, accounting for 69%
of the energy mix. As such, improving cleanliness of coal extraction and
combustion is critical to reducing overall emissions. Clean
energy-efficient products that are needed in this sector include: coal
beneficiation products, coal mine methane extraction technologies, gas
turbines, circulating fluidized bed boilers, pollution control
technologies such as desulphurization technologies, and coal conversion
technologies such as advanced pulverized coal gasifiers.

Due to an insufficient supply of electricity, China will continue to
invest heavily in coal production. Many analysts predict that China will
need to invest over \$151 billion in coal infrastructure by 2020. The
investment will cover the following areas:

-   Construction of new coal mines and coal bases

-   Improvement of coal mine safety

-   Clean coal processing technology

-   Coal conversion technology (including coal liquefaction and coal
    gasification)

-   Coal bed methane development and utilization

In order to improve mine management and increase coal production, the
Chinese government has established new policies to encourage foreign
investment in the sector. This shift in policy has included granting
foreign companies the rights for mineral geological exploration.

### BEST PROSPECTS:

U.S. companies enjoy their greatest competitive advantage in supplying
heavy coal mining machines and systems. For underground mining, U.S.
firms compete well in the following categories: longwall shearers,
stageloaders, continuous miners, batch haulage vehicles, road headers,
hydraulic roof support systems, and armored face conveyors. For open-pit
mining, U.S. firms compete well in the following categories: electric
mining shovels, walking draglines, blast hole drills, and heavy mining
trucks.

Coal mine safety remains a critical issue in China. In 2007, China
suffered 3,786 coal mine accidents deaths. In order to address the issue
of safety, the Chinese government closed 2,969 small coal mines in 2007
(below 30,000 tons of production capacity) that the government
determined were unsafe. According to the State Administration of Coal
Mine Safety Supervision, China will invest \$6 billion over the next
several years to purchase safety equipment for large state-owned coal
mines. This investment will create significant opportunities for foreign
companies to export safety equipment to China. Best prospects include:
coal mining safety equipment, security equipment, gas control systems,
and fire monitoring and control equipment.

[**[Major Shows &
Exhibitions]{.underline}**](http://www.buyusa.gov/china/en/chemicals.html#_top)

China International Coal Equipment and Mine Technical Equipment Expo\
June 11-13, 2008\
Beijing\
![](media/image1.png){width="0.125in"
height="9.375e-2in"}[http://www.ciceme.com](http://www.ciceme.com/)

Xinjiang International Coal, Minerals and Exploration Technology &
Equipment Expo\
July 22-24, 2008\
Xingjiang\
![](media/image1.png){width="0.125in"
height="9.375e-2in"}[http://www.xjicme.com.cn](http://www.xjicme.com.cn/)

Ningxia International Coal and Energy Industry Equipment Fair\
July 24-26, 2008\
Ningxia\
![](media/image1.png){width="0.125in"
height="9.375e-2in"}[http://www.nxea.com]{.underline}

China Yulin International Coal and Mining Industry Expo\
September 01-03, 2008\
Yulin\
![](media/image1.png){width="0.125in"
height="9.375e-2in"}[http://www.cinn.com](http://www.cinn.com/)

China (Taiyuan) International Coal and Energy New Industry Exhibition\
September 16-19, 2008\
Taiyuan\
![](media/image1.png){width="0.125in"
height="9.375e-2in"}[http://www.cicenexpo.com](http://www.cicenexpo.com/)

China Coal Exhibition 2008\
November 4-7, 2008\
Beijing\
![](media/image1.png){width="0.125in"
height="9.375e-2in"}[http://www.coal-china.org.cn](http://www.coal-china.org.cn/)

[**[Useful
Websites]{.underline}**](http://www.buyusa.gov/china/en/chemicals.html#_top)**:**

National Development and Reform Commission

<http://www.sdpc.gov.cn/>

State Administration of Coal Mine Safety\
<http://www.chinasafety.gov.cn/>

China National Coal Association

[http://www.chinacoal.org.cn](http://www.chinacoal.org.cn/)

China Energy Net

[http://www.china5e.com](http://www.china5e.com/)

[**[Key Industry
Contacts]{.underline}**](http://www.buyusa.gov/china/en/chemicals.html#_top)

State Coal Mine Safety Supervision Administration\
No. 21, Heping Li Beijie, Beijing 100713, China\
Tel: (86-10) 6446-3470\
![](media/image1.png){width="0.125in"
height="9.375e-2in"}[http://www.ctcci.org.cn](http://www.ctcci.org.cn/)

China Coal Industry Association\
No. 21, Heping Li Beijie, Beijing 100713, China\
Tel: (86-10) 6446-3371\
![](media/image1.png){width="0.125in"
height="9.375e-2in"}[http://www.chinacoal.org.cn](http://www.chinacoal.org.cn/)

China Mining Association\
No. 2-1002, Shidaizhiguang, No. 45 Xizhimenbeidajie, Beijing 100713,
China\
Tel: (86-10) 6655-7672

Fax: (86-10) 6655-7672\
![](media/image1.png){width="0.125in"
height="9.375e-2in"}[http://www.chinamining.org](http://www.chinamining.org/)

China National CoalMachinery Industry Association\
No. 21, Heping Li Beijie, Beijing 100713, China\
Tel: (86-10) 6446-3190

Fax: (86-10) 6421-7355

![](media/image1.png){width="0.125in"
height="9.375e-2in"}[http://www.chinacoal.org.cn](http://www.chinacoal.org.cn/)

Central Coal Mining Research Institute\
No. 5, Qingniangou Road, Hepingli, Beijing 100013, China\
Tel: (86-10) 8426-2806\
![](media/image1.png){width="0.125in"
height="9.375e-2in"}[http://www.ccri.com.cn](http://www.ccri.com.cn/)

China Coal Information Institute\
No. 35, Shaoyaoju, Chaoyang, Beijing 100029, China\
Tel: (86-10) 8461-2550 84657848\
![](media/image1.png){width="0.125in"
height="9.375e-2in"}[http://www.coallinfo.net.cn](http://www.coallinfo.net.cn/)

[**[U.S. Commercial Service Contact Information In
China]{.underline}**](http://www.buyusa.gov/china/en/chemicals.html#_top)

**Beijing Office:**\
Tel: (86-10)8529-6655\
Fax: (86-10)8529-6558/9\
[Bryan Larson]{.underline}\
[Ma](mailto:Baochun.Mei@mail.doc.gov) [Mingming]{.underline}\
\
**Shanghai Office:**\
Tel: (86-21)6279-7930\
Fax: (86-21)6279-7639\
[Eric Hsu](mailto:eric.hsu@mail.doc.gov)\
[Scott](mailto:stellar.chu@mail.doc.gov) Yao\
\
**Guangzhou Office:**\
Tel: (86-20)8667-4011\
Fax: (86-20)8666-6409\
[Lena Yang](mailto:Lena.Yang@mail.doc.gov)\
\
**Chengdu Office:**\
Tel: (86-28)8558-3992\
Fax: (86-28)8558-3991\
[Cui Shiyang](mailto:Cui.Shiyang@mail.doc.gov)

[Chen Ling](mailto:ling.chen@mail.doc.gov)

**Shen Yang Office:**\
Tel: (86-24)2322-1198\
Fax: (86-28)2322-2206\
[Liu](mailto:Cui.Shiyang@mail.doc.gov) [Yang]{.underline}