China gets tough on coal: Not to approve new mines until 2019; Malaysia curbs bauxite mining

China is getting tough with coal mines and will not approve any fresh coal mines for the next three years. China, which is world’s largest coal consumer has made it loud and clear that it will cut coal output to reduce oversupply and tackle the pollution crisis. Pollution used to become worse during winter as power consumption goes up as demand for heating soars.

A report by Mining News said the decision is part of the plans mooted by the national energy regulator. Accordingly, Beijing will be shutting more than 1,000 coal mines in 2016 and remove 60 million metric tons of excess capacity, reported the state-run Xinhua News.

New energy mix

The post-Paris climate summit energy mix of China for 2016 will also see changes with non-fossil fuels up by 13.2 percent of the country's energy mix, over the 12 percent of 2015. The use of natural gas will also increase to 6.2 percent from 6 percent and coal usage will be curbed to 62.6 percent from the 64.4 percent of 2015.

For the next five years, Chinese government will be adding 20 million kilowatts of installed wind power and 15 million kilowatts of installed photovoltaic power.

Malaysia curbs bauxite

Meanwhile, Malaysia announced strict curbs on bauxite mining following high concerns on its harmful effects on environment. According to a cabinet source, the new curbs will affect the supply of bauxite to China, which is the main ingredient for making aluminium.

The new decision on bauxite mining will have new rules on licensing and environmental protection.

“The idea is to suspend it for a time until all this is sorted out, but ultimately the prerogative for licensing lies with the state," reported the Reuters citing reliable sources.

Malaysia’s unregulated bauxite industry had been making rapid growth in the last two years fed by high demand from China. There were allegations that the rampant Bauxite mining was responsible for turning the waters red on the coastline and many rivers in the eastern peninsula of Malaysia.

In 2015, Malaysia exported more than 20 million tonnes of bauxite to China that was more than 700 percent from the exports in 2014. In 2013, it shipped just 162,000 tonnes, reported Stuff.Co.Nz.

Indonesia’s retreat

Bauxite mines started mushrooming in Malaysia since 2014 in the Kuantan region, facing the South China Sea. The Malaysia mines had been shipping huge amounts of bauxite to China to fill up the supply gap created from Indonesia’s banning of bauxite exports in early 2014, forcing China to seek supplies from other suppliers.

Prime Minister Najib Razak recently reportedly asked the resource minister to resolve the bauxite related issues with the state government covering the bauxite producing region of Pahang.

However, top environment official, Mohd Soffi Abd Razak, clarified that the pollution in the region was caused by illegal mine operators and not by those mines duly approved by the state government.

“We believe the illegal miners are causing the waters to be murky,” reported the local daily Malay Mail, quoting that official.