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China Power Crisis to Kick Off Global Race for Coal Imports

  • Country may need to seek coal from wider range of producers
  • This will put it into competition with European, Indian buyers
Coal Operations in NSW as Australia's Government Seeks Commitment fort Power Generation

Photographer: David Gray/Bloomberg

China’s power crisis looks set to spur it to import more coal from a wider range of producers, putting it into competition with European and Indian buyers that are also snapping up more of the dirtiest fossil fuel. 

More than two-thirds of China’s electricity comes from coal-fired plants and, while more than 90% of the fuel it uses is mined locally, it’s difficult to raise local output at short notice. Looking offshore is the easier option, but that’s been complicated somewhat by Beijing’s decision to ban imports from Australia -- the world’s second-biggest exporter -- late last year.