Sept 16 (Reuters) - Inner Mongolia, China's largest
coal-producing region, has ordered 15 mines to halt production
after they were found to have exceeded their approved output
plans, a document from the Inner Mongolia Autonomous Region
Energy Bureau showed.
China launched inspections in major coal hubs in July and
asked local authorities to report whether mines had exceeded
output in 2024 and the first half of 2025, as Beijing seeks to
tackle overcapacity in the sector.
Reuters called the Inner Mongolia Autonomous Region Energy
Bureau, and the person who answered confirmed the document
detailing the results of the region's production capacity
inspection and the key details.
The investigation results showed that 15 mines in Ordos
exceeded their approved capacity by more than 10% in the first
half of 2025. They have been ordered to suspend operations and
may resume only after passing inspections by regional safety
regulators, according to the document.
The document did not provide a timeline for when the
inspections will take place. The halted mines have combined
annual capacity of about 34.6 million metric tons, according to
Mysteel, a Chinese commodity consulting firm.
As of September 16, five of the 15 mines, with combined
capacity of 19.3 million tons per year, were ordered to suspend
production for five to seven days due to safety hazards. Four
mines have since resumed normal production after the
inspections, according to Mysteel.
China's most-traded coking coal futures contract on the
Dalian Commodity Exchange rose 5.84%, or 68.5 yuan ($9.63) a ton
on Tuesday.
The market rallied after state media published President Xi
Jinping's call on Monday for the "orderly exit" of outdated
production capacity and the curbing of "disorderly" price
competition.
($1 = 7.1151 Chinese yuan renminbi)
(Reporting by Sam Li and Colleen Howe in Beijing; Editing by
Emelia Sithole-Matarise)