If you’ll pardon the pun, the Chinese government is digging deep to change its coal mining industry. The nation which both produces and consumes more coal than any other in the world became a net importer of the product two years ago, when Beijing’s central government began a clamp down on unsafe mining operations. Now, they are looking to restructure the industry in order to reverse that trend.

Our mining correspondent states: “At the moment, coal production and use in China is on a knife-edge, with coal-burning power plants warning that they may not be able to meet demands in the summer, when much electricity is used for air-conditioning; there may be rolling power shortages. However, Beijing is confident that they will soon be able to promise long-term coal supplies by bringing more sources of coal online.”

As China looks to assert itself as the number one power on the planet, a necessity to guarantee production by ensuring that its industries are functional at all times becomes more pronounced. The nascent more open approach to globalisation that has been taken by Beijing also means that it is necessary to be seen to operate in a way that will gain acceptance in the outside world, environmentally and in terms of living standards.

Our correspondent concludes: “The steps that China takes to take coal production into its own hands will be instructive for the global mining industry as a whole. Once China becomes a net exporter again, this will have an impact on coal prices worldwide and will mean that coal industries in other nations need to move to compete. This is something worth keeping an eye on.”