Increased Energy in China Will Affect the Coal Industry

The higher uptake of renewable energy by new import markets such as China could pose a major financial risk for the global coal mining industry, according to a new report by the Institute for Energy Economics and Financial Analysis.

It’s said that this report is a wake-up call to global investors and industry, establishing the uneconomic basis of international coal projects, which rely on China as a potential growth market. China's perilous economic and financial situation creates further uncertainty for companies relying on its ability and willingness to import coal, with its associated implications for inflation, current account deficits, economic instability and energy security.

The good news is that renewable resources are increasingly affordable and effective: wind, solar and hydro can be built faster and cheaper, in addition to acting as a deflationary driver in the economy. Moreover, a greater reliance on imported coal undermines China's national energy security position and weakens its push for greater energy sector diversity. The global coal industry's economic models are flawed, the world's poor won't be helped and the demand that is used to justify ruining the environment is an illusion. Savvy operators are getting out of coal.

According to this report, the domestic mining machinery enterprises like our company should take measures to adapt to the new environment and try to make new inventions in accordance with new technologies and new developing trend. To manufacture quality machines like crushers, grinding machines, sand makers and ore beneficiation machines is not enough, we should consider making new products to process renewable resources.