Ministry of Land and Resources: Coal exploration rights still banned in the next two years

Business News Agency, March 30: To keep coal production basically stable and to avoid overcapacity due to overheated coal exploration investment, the Ministry of Land and Resources decided yesterday that it will continue to suspend applications for coal exploration rights for the next two years. The Ministry of Land and Resources recently issued the “Notice on Continuing the Suspension of Acceptance of Applications for Coal Prospecting Rights”, which requires that in addition to the key coal development projects approved by the State Council and the use of the Central Geological Exploration Fund (Turnover Fund) or provincial geological special funds for coal surveys and necessary In addition to the coal prospecting rights that can be investigated, the nationwide suspension of applications for new coal prospecting rights will be suspended until March 31, 2011. If it is found that there are violations of the assignment of coal prospecting rights, the relevant responsible persons and staff will be held accountable according to law. In February 2007, in order to avoid overcapacity due to overheated investment in coal exploration and to maintain coal production basically stable, the Ministry of Land and Resources issued the "Notice on Suspension of Application for Coal Prospecting Rights", deciding to start on February 2, 2007 New applications for coal prospecting rights will be suspended nationwide until December 31, 2008. The relevant person in charge of the Ministry of Land and Resources said that the production capacity of existing coal mine enterprises is far greater than the actual production volume. The suspension of applications for coal prospecting rights mainly takes into account the balance of macro supply and demand on the market. Industry sources also said that the suspension of new coal prospecting rights will inhibit the increase of new coal production capacity, which will help to inhibit the increase in the supply of the coal industry and benefit the coal industry in the long term.