Business crisis of Erdos mining companies

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From April’s PPI data, pricing in the mining industry fell 8.2 percent, which was the largest decline in the industries. According to China Coal Transportation and Marketing Association statistics, by the end of February the national key coal enterprises inventory was 37.9 million tons, an increase of 9.76 million tons compared to last year, an increase 34.7% overstock. Erdos (鄂尔多斯) is the country’s main coal producing areas, many of the local coal mines suffered heavy losses.

Erdos Yulon Fuxiang is a company operating a coal mine in Erdos with an annual output of 1 million tons. It is a small coal mine in the local industry. Reporter at the site of production did not see busy production activities, but instead only a few workers and two coal cars were at work. Mine general manger Fu Sang told reporters that Yulon Fuxiang was mainly engaged in the production of about 5,000 kcal coal; due to lower power demand, the current production was almost stopped.

Ordos Coal Bureau, deputy researcher Leung said, due to market factors, 21 percent of the city’s local coal mines had been shut down.

Source: ChinaNews

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