(Yicai) Aug. 12 -- During the five-year period of China’s latest development plan, the country aims to speed up the revamping of its coal industry, shifting from simply ensuring enough supply toward concentrating production in large, modern, and technologically advanced mines while targeting peak consumption of the fossil fuel by 2030.

China will consolidate the role of Shanxi province, western and eastern Inner Mongolia Autonomous Region, northern Shaanxi province and Xinjiang Uygur Autonomous Region as its principal coal-producing regions, with a focus on devoting large, modern, high-standard mines in these areas, according to a blueprint jointly released by the National Development and Reform Commission and the National Energy Administration on Aug. 10.

By 2030, those five regions are expected to account for more than 80 percent of China's total coal production, per the plan.

The country will simultaneously accelerate the phased retirement of outdated production capacity, including closing mines in western regions with obsolete technology in ecologically sensitive areas and those in central and eastern regions that have been hit by disasters and resource depletion.

China’s push for peak coal use by 2030 comes as the world’s largest coal consumer rapidly expands its renewable energy sector while retaining coal as a key source of energy security. The country’s coal demand was broadly flat last year amid strong growth in wind, solar, hydropower, and nuclear power generation.

In 2020, the government set the twin targets of achieving peak carbon dioxide emissions by 2030 and carbon neutrality before 2060.

To raise the level of intelligent mining, the plan calls for the systematic application of artificial intelligence in areas including exploration and design, construction and production, operations and maintenance, and safety management, while replacing workers in dangerous and physically demanding jobs with robots.

The plan also seeks to promote low-carbon mining areas, including the creation of a carbon emissions and footprint monitoring system for coal production. It encourages mining areas to use electric heavy-duty trucks and hydrogen-powered heavy-duty trucks instead of fuel-powered vehicles, and to develop wind, solar, and geothermal projects at mines where conditions permit.

Through these efforts, big modern mines and smart mines will likely account for 87 percent and 75 percent, respectively, of China’s total coal output capacity by 2030. There will also be significant improvements in the safety, green development, and clean, efficient utilization of coal resources by then.

As the industry shifts from expansion to improving quality, small and mid-sized mining companies that lack the ability to carry out smart upgrades will face greater pressure to adapt, while leading miners with resource advantages and a first-mover advantage in intelligent mining are likely to capture a bigger market share, Lin Boqiang, director of Xiamen University's China Institute for Studies in Energy Policy, told Yicai.

Editors: Dou Shicong, Futura Costaglione