Coal is one of the most important solid fuels for generating electricity through combustion, accounting for about 40% of world coal consumption annually. It is also used in the industrial and retail sectors as a fuel for heating and powering foundries, cement plants and other industrial and manufacturing facilities. Some electric power plants also use coal to produce steam for electricity generation and heat provision.
Amounting to a total of 909 gigatonnes, global proved coal reserves are widely distributed, primarily in the USA, Russia, China, Australia and India. China has a 5,569.7 billion tonnes of coal resources, 1,003.2 billion tonnes of possessed reserves and 114.5 billion tonnes of proved reserves. About three quarters of China's proved recoverable reserves are located in North and Northwest, particularly in Inner Mongolia and Shanxi Province.
In 2010, global production of coal reached 7.27 billion tonnes. In China, the world's leading coal producer and consumer, 3.24 billion tonnes of coal, equivalent to 45% of world total, was produced in 2010. In the same year, coal consumption in the country reached 3.18 billion tonnes. Owing to rapid industrialization and urbanizations processes in the country, steady growth in the demand for coal is foreseen.
So far, the group has acquired 7 coal mines in Guizhou province. Three mines are currently in commercial run, one in pilot run, one will start pilot run soon, and the other one is in construction stage. The Group is expected to gain from these strategic acquisitions a strong foothold for its ambitions to venture into the coal industry, thereby expanding its portfolio of natural resources productions.