This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 7/25/2017

Overview

 

2012

2013

2014

2015

2016

2017
(f)

2018
(f)

2019
(f)

2020
(f)

2021
(f)

Mining Industry value (USD Billion)

429.32

372.77

310.90

256.95

233.52
 

228.46

230.61

232.22

241.37

253.11
 

Mining Industry Value, Real Growth
(% year to year)

1.94

-13.17

-16.60

-17.35

-9.12

-2.17

0.94

0.70

3.94

4.86
 

Exchange Rates: $1= RMB 6.9   f: forecast
Source: National Sources, BMI Research

China is the world’s largest producer of coal, gold, and most rare earth minerals. Additionally, China is the world’s leading consumer of most mining products, particularly for commodities like thermal coal and iron ore, which account for approximately 49% and 58% of global demand, respectively. In total, there are more than 10,000 (mostly coal) mines in China, producing a large amount of the world’s supply.

After nearly a decade of rapid growth, coal consumption in China dropped continuously in 2016. This is due in large part to China’s ongoing economic downturn, industry restructuring, and new energy and environmental policies that are focused on increasing the percentage of cleaner thermal energy sources such as natural gas and renewable energy.  In particular, coal-intensive industries such as steel, cement, and fertilizer saw marked reductions in demand that, combined with the ongoing drive to make these industries more energy efficient, also contributed to the drop in coal consumption in 2016.

Looking forward, China’s “Made in China 2025” blueprint, unveiled by the State Council in May 2015, outlines China's strategic vision to modernize manufacturing through information technology and other innovations. This modernization will likely accelerate the reduction of energy intensity and change energy consumption patterns across the country. Significant future reductions are also expected with respect to industrial use and consumption as the country moves to close inefficient, polluting coal-fired boilers and phase out industrial processes that utilize coal as a primary energy source. For reference, coal directly burned at industrial facilities accounts for more than 20 percent of the coal consumption in China (compared with less than 5 percent in the United States).  This suggests significant potential for reduction.

China's Energy Development Strategy Action Plan (2014-2020) also sets binding caps—at absolute levels for the first time—on annual primary energy and coal consumption until 2020,  specifying targets for reducing coal's share in primary energy consumption to 62 percent while  increasing non-fossil energy's share to 15 percent by 2020 and to 20 percent by 2030.

Clean Coal Development
As discussed above, the Chinese government continues to promote the clean and efficient development of conventional fossil energy production and utilization. The Development Plan for Coal Industry as part of the 13th Five-Year Plan calls for the vigorous development of clean coal technology and the efficient and clean utilization of coal.

Clean coal is the process of chemically washing coal of its minerals and impurities, removing sulfur dioxide, and making the carbon dioxide in the flue gas economically recoverable. The coal industry uses the term "clean coal" to describe technologies designed to enhance both the efficiency and the environmental acceptability of coal extraction, preparation, and usage.  Present day clean coal technologies include several generations of technological advances that have led to a more efficient combustion of coal, with reduced sulfur dioxide and nitrogen oxide emissions.

Clean coal technologies currently being developed and used in China include advanced coal utilization, high efficiency combustion, advanced power generation technologies, coal conversion technologies, integrated gasification, combined cycle and carbon capture (pre-combustion capture, post–combustion capture, oxy-combustion capture), utilization, and storage.

Leading Sub-Sectors
Carbon Capture, Utilization and Storage (CCUS)
CCUS technology has been considered an important strategy of China's clean coal technology strategy in both the short and the long term. The International Energy Agency (IEA) forecasts that by 2050, CCUS could become the biggest contributor to emissions reduction among any single technology. As such, China is emerging as a major influencer on CCUS deployment with several planned and operational demonstration projects. The country has adopted an encouraging policy framework and has increased the support for research and development projects.
As a pioneer in CCUS, the United States has developed cutting edge technology through various R&D projects. The U.S. Department of Energy (DOE) administers a Clean Coal Technology program to encourage and support public/private partnerships to research, develop, and demonstrate clean coal technologies that can be ultimately brought to large-scale commercial deployment.

Advanced Coal Gasification Technology
China is the largest coal gasification market in the world.  The market is supported by the National Energy Administration, which has laid out plans to produce 50 billion cubic meters of gas from coal by 2020, enough to satisfy more than 10 percent of China's total gas demand. However, there are two major problems with coal gasification. Coal gasification produces more CO2 than a traditional coal plant, and it is one of the more water-intensive forms of energy production. New technology and equipment to solve these two problems are good prospects for U.S. companies.

Coal Gasification with Carbon Capture and Storage
Combining coal gasification with carbon capture and storage in the power sector remains a critical pathway towards low-carbon power generation.  As such, China has high demand for technologies that include coal co-generation systems with CO2 capture including new coal-to- chemical co-generation, new CO2 capture processes, and co-generation system with combined pyrolysis, gasification, and combustion.

CO2 -EOR (Enhanced Oil Recovery)
CO2 -EOR is an oil production technique through which CO2 is injected into previously developed oil fields to recover additional oil not obtainable by primary and secondary techniques. CO2-EOR is widely considered to be a method to increase domestic oil production by using CO2 captured from power plants and industrial sources. China is in the developing stage to adopt this technology to local oil fields. The United States has more than 40 years of experience in CO2 -EOR which gives U.S. companies a leg up in China’s growing EOR market.

Opportunities
The bestselling opportunities in the clean coal technology sector include:

  • CO2 capture technology exports/licensing

  • Pipeline fabricators for CO2 transportation

  • Information technology companies, materials suppliers, and engineering contractors for CO2 utilization

  • Storage monitoring service suppliers and Emergency Response services suppliers for CO2 Storage

  • Coal gasification technology exports/licensing

 
Trade Shows & Events
International Field Exploration and Development Conference 2017
Sep 21-22, Chengdu
 
China Gold Congress
Date TBC, Beijing
 
China Mining Conference and Exhibition
Sep 22-25, Tianjin 2017
 
China Coal & Mining Expo 2017
Oct 26-28, Beijing
 
Bauma China 2018
November 27-30, Shanghai
 
Web Resources
U.S. China Clean Energy Research Center
Clean Coal Working Group, Energy Cooperation Program
Climate Change Working Group
China NDRC Climate Change Division
National Center for Climate Change Strategy and International Cooperation
 
U.S. Commercial Service Contact for Mining and Materials Sector
Helen (Haiyan) Hua, Haiyan.Hua@trade.gov
T: +86 28-8598-6738
M: +86 138-8206-5380

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


More Information

China Mining Equipment and Machinery Trade Development and Promotion