Chinese coal mining companies are closing for Lunar New Year, which workers would traditionally work through to meet peak holiday demand, to reduce pressure on the sector which is struggling with an excess supply of coal. The closures come as China prepares to open its first new coal-fired power plant in more than a decade, and follows years of efforts by Beijing to cut air pollution from burning fossil fuels. Although China is the world's largest consumer of coal, slowing economic growth and a shift from fossil fuels to clean energy sources has created lower demand and resulted in significant overcapacity.
Chinese coal mining companies are closing for Lunar New Year, which workers would traditionally work through to meet peak holiday demand, to reduce pressure on the sector which is struggling with an excess supply of coal. China's top coal producers, including Shenhua Group, China Coal Energy Group and the China Datong Coal Group, which account for about 20% of domestic output, have signed a miners' declaration to close down production. Although China is the world's largest consumer of coal, slowing economic growth and a shift from fossil fuels to clean energy sources has created lower demand and resulted in significant overcapacity.