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China's Coal Took $250 Billion Last Year

The costs of exploiting the coal rose up to billions of dollars

Oct 28, 2008 05:15 GMT  ·  By
Coal accounts for some 1.95 trillion kilowatt-hours per year in China, roughly two thirds of the nation's requirements
   Coal accounts for some 1.95 trillion kilowatt-hours per year in China, roughly two thirds of the nation's requirements

According to the latest estimates, China is the world's largest producer and consumer of coal, having already brought, or planning to bring on-line a large number of coal-powered power plants, in the nation's rich Northern coal basin. But with higher rates of consumption come very high risks, translated in loss of human lives and in irreparable damage done to the environment, especially in areas around major coal mines.

The nation is currently facing several pressing problems, including a potential loss in its ability to supply food for the entire population. Statistics show that a warming in the general climate of the country could throw it into a spiral of uncontrolled territory-loss, meaning that several hundred thousand acres of soil will be lost to agriculture every year. The air is also getting heavier, with non-stop factories pumping countless tonnes of carbon into the atmosphere.

Last year, some 3,800 Chinese workers died in accidents related to working in mines, including cave collapses, tunnel floods and poor explosive detonation. And though that statistic shows that the number of accidents was smaller than that recorded in 2006 by more than 20 percent, this industry remains the most dangerous in the country. Poor regulations account for such disastrous outcomes from the mining process.

Government authorities are unable to impose strict environmental and safety regulations throughout the nation, so there is no real perspective that the very large number of accidents will drop anytime soon. Accountable for the way legal and illegal miners behave are the severe regulations that Beijing set in place, which keep the energy price at an acceptable level and encourage consumption. This means that the demand is always on the rise and that the country's workers need to cope with it.

That's one of the main reasons why China now has to increase its overall production by some 200 million tonnes each year, which is roughly equivalent to the entire production of Indonesia, also an important global producer. Environmentalists say that removal of price caps could trigger higher prices, but also a rise in efficiency and, maybe, even green energy. It still remains to be seen what China has in mind for its coal, as well as for its waters.