China is by far the world’s largest consumer of coal resources, with its annual consumption  accounting for nearly
one third of the planet’s coal use.  Over seventy percent of China’s energy production comes from coal.   Reserves
in the country are plentiful.  With its economy growing in excess of 10% annually, demand for coal and other energy
sources is outstripping supply.  Coal demand in China has increased 13% annually since 2004, but supply has only
increased 7%.
Chinese Energy Market
Demand for so-called "coking coals" has
similarly risen.  Cleaner burning and
generating more energy than
traditional burning coals, coking coals
are used in the production of steel
and heavy irons that are the building
blocks of the country’s exploding
physical infrastructure, the growth of
which is evident in the fast growing
centers in Beijing, Shanghai and
virtually every corner of China. China
produced a total of 400 million tons of
steel in 2006, a number that has grown
annually by over 20% since 2003. Steel
production is expected to reach 550
million tons by 2010, and consumption
is forecast to account for 40% of global
consumption.
Whether traditional burning coals to support basic energy needs, or coking goal to fuel massive growth in Chinese
economic and physical infrastructure, demand for coal in China continues to grow.