China confirms it will build extra coal mine capacity this year

China’s cabinet has confirmed that the addition of an extra 300-million tons of coal mining capacity will happen this year, a blow to shippers already contending with weaker Chinese imports.

The authorities hadn’t previously given a timeline for the ramp up, which threatens to upend the global market for the dirtiest fossil fuel. China’s year-to-date imports are already running almost a quarter below the pace set in 2021 due to record domestic production, and price controls that disfavor its main suppliers in Indonesia, Russia and Mongolia.