Coal production plunged (-6.1%), in line with China’s decline (-9%)

China, which represents 44% of world coal and lignite production, recorded a contraction in its production for the third consecutive year. To help support domestic prices, the Chinese Government has implemented measures to reduce coal production capacities including the closure of the most inefficient mines. In addition, the country’s output was also impacted by legislation from April 2016 that has cut coal mine production to a 276-day basis, down from 330 days previously. This measure was, however, eased again during the autumn.
Colombia and Russia, two of the world largest coal exporters, increased their production in the second half of 2016 to supply the international market.
Resulting from the government’s willingness to lower its import dependency, India favoured an increase in its domestic coal output.
Coal production dipped strongly in the USA because of reduced national demand combined with the financial issues facing its main producers, three out of the four largest producers filed for bankruptcy in 2016.