Coal giants say they’ll close over Lunar New Year holidays

By Reuters – Global Times Source:Global Times-Agencies Published: 2016-1-31 23:48:01

In a break with tradition, 15 Chinese coal mining groups have said they will close operations and allow workers time off during the upcoming Lunar New Year holidays, easing pressure on a sector burdened by massive overcapacity, Reuters reported Saturday.

Any suspension of output over the week-long holiday, which starts on February 7, could underpin coal prices that fell nearly one-third in 2015. Spot thermal coal in Qinhuangdao port, North China's Hebei Province, rose 1.4 percent to 375 yuan ($57.03) per ton last week, not far from a multi-year low of 370 yuan.

Lower demand and high supplies have led to the price rout, leaving the sector in crisis, the miners said in a declaration on company websites. Suspending operations in the holiday would ease the pressure, they noted.

Miners are normally expected to work through the holidays in order to guarantee supplies over the period when power and heating demand typically hit a peak. During the holiday, State leaders are often filmed visiting miners working underground.

"On the condition that we can maintain safe production and stable supplies, and barring any special circumstances, we declare that we will cease operations during the 2016 Spring Festival holiday and workers will go on holiday," the miners' declaration said.

The nation's top coal producers - the Shenhua Group, China Coal Energy Group and the China Datong Coal Group - which account for about one-fifth of total output, signed the declaration.



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