CHEN QIAN (CHINA)

Post-graduate student of the Russian State Geological Exploration University

L. M. PROKOFIEVA

Candidate of Geological and Mineralogical Sciences

Keywords: China, coal mining, coal export from Russia, environmental pollution

The rapid growth of the Chinese economy over the past two decades has led the world to talk about the Chinese "economic miracle". Miracles may or may not be believed, but the reality remains that the development of the Chinese economy is based primarily on the use of labor potential (cheap labor) and coal as the most important energy resource.

Currently, China accounts for 17.7% of global energy consumption. At the same time, the share of coal in the total energy consumption in the country is very high - 70%¹. This is due to the fact that China as a whole does not have significant oil and gas resources: proven hydrocarbon reserves account for no more than 1.5% of the world's ².

CHINA IS THE WORLD'S LEADING COAL PRODUCER

China ranks third in the world in terms of proven coal reserves (114.5 billion tons, or 13.9% of world reserves), following the United States (238.4 billion tons, 28.9% of world reserves) and Russia (157 billion tons, 19.0%) ^.3

China ranks first in terms of estimated (estimated) geological coal resources ($986 billion). t), but only 7.3% of them have been explored for hard coals and 40.8% for brown coals. For the United States, this figure is 19.5% and 32.8%, respectively, for Russia-73% and 69.2%. And this indicates not only the prospects for discovering new coal deposits in China, but also a much worse study and exploration of the territory than in Russia and the United States.

Coal deposits are found in many provinces and autonomous regions of China, the most significant are located in the north and northwest of the country

in the provinces of Shanxi, Shaanxi and Inner Mongolia Autonomous Region. The coals are mostly stony.

The first information about the use of coal in China dates back to the Han Dynasty (206 BC - 220 AD), when coal was used for melting metals; during the Song Dynasty (969-1279), coal was also used as fuel, for firing porcelain and evaporating salt solutions. The famous traveler Marco Polo, who visited China in the XIII century, wrote: "There are black stones all over the region of China; they are dug up in the mountains like ore, and they burn like firewood. The fire from them is stronger than from firewood... They burn these stones, you know, all over the region of China. They have a lot of wood, but they burn stones, because it is cheaper, and trees are saved. " ⁴

Still, the origin of China's modern coal industry can be traced back to 1874, when the Qing Dynasty government, as part of an agreement signed with the British government, allowed the British to explore coal deposits in Taiwan, as well as in the provinces of Jiangsu and Jiangxi in mainland China. In 1876, the first coal mines were opened in Taiwan, and in 1881-in mainland China.

At the end of the 20th century, in line with the ever-growing needs of the economy, coal production in the country grew at an accelerated pace.

In 1980, 620 million tons were produced, in 1990 production already exceeded a billion (1035 million tons), in 2000, 1238 million tons were produced, in 2009 - 2950 million tons (43.4% of world production). Thus, over 10 years (2000 - 2009), China increased its coal production by 2.4 times. Currently, China is the world leader in coal production, leaving far behind the main coal-producing countries-the United States (985 million tons were produced in 2009), India (525.4 million tons), Australia (404.7 million tons). and Russia (300.6 million tons) ⁵.

In 2010, China's coal production totaled approximately 3.3 billion tons, and the 12th five-year plan for China's socio-economic development for 2010-2014 aims to increase production to 4 billion tons by 2015.

However, there is not enough coal in the PRC, because the growth of the country's gross domestic product (GDP) is largely based on energy-intensive sectors of the national economy: energy (79% of the country's electricity is produced on the basis of coal), metallurgy (in the global structure of steel production, China accounts for 49%), cement production and chemical industry. industry. The development of these industries is actively supported by the Government.

PROSPECTS FOR RUSSIAN-CHINESE COOPERATION: NOT JUST EXPORT

In 2009, China, which had been actively exporting coal for many years, became a net importer of coal. According to the General Administration of Customs of the People's Republic of China, 126 million tons of coal worth $10.6 billion were delivered to the country, mainly from Australia, Indonesia, Vietnam and Russia.

Cooperation between Russia and China in the field of coal mining and use began in 2000. At that time, the Agreement on Continuing Cooperation in the energy sector also provided for cooperation between the two countries in the field of coal. In May 2009, a Memorandum of cooperation in the coal sector was signed.

During the visit of Russian President Dmitry Medvedev to China in September 2010, the Protocol to the Memorandum on Cooperation in the Coal Sector dated 24.05.2009 and the Roadmap for Cooperation in the Coal Sector were approved. According to the agreements reached between the Ministry of Energy of the Russian Federation and the State Energy Administration of the People's Republic of China, Russia will provide 10% of Chinese coal imports.

Russian coal is attractive to China not only for its quality, but also for its price. And if in 2008 Russia's exports to China amounted to only 0.76 million tons, in 2009 it was delivered 11.78 million tons worth $1.02 billion. It is assumed that until 2015. Russia will increase its coal supplies to China to 15 million tons per year, and in the next ²⁰ years it will supply at least 20 million tons of coal per year6. Export growth can be more significant if convenient transportation channels are provided.

The Chinese government has allocated a $6 billion loan to Russia to set up joint ventures to develop the coal resources of the Russian Far East and Siberia, purchase the necessary equipment, and build railways.⁷ It is assumed that a significant part of these funds will be directed to the development of the Elegest field in the Republic of Tyva, as well as deposits in the Sakhalin region.

Agreements have already been reached between the Russian Federation and the People's Republic of China to establish a joint venture to develop the Ogodzhinskoye field in the Amur Region and carry out work in the field of technologies for producing liquid products from coal. The largest Chinese coal mining company Shenhua Group Co. Ltd is going to take part in the development of the Ogodzhinsky coal deposit, including the development of the necessary transport infrastructure.

It may seem that Russian-Chinese cooperation in the field of coal mining and use is mainly focused on the supply of coal from Russia. In this regard, it should be noted that some Russian experts believe that the growth of Chinese demand for Russian fuel and energy raw materials may further exacerbate the national disease of Russia - the dependence of its economy on the export of natural resources.

However, it seems that the export of Russian coal is beneficial not only to the PRC, but also to the Russian Federation, since the growth of coal production (especially energy) in Russia is mainly due to an increase in export supplies: domestic demand for this type of fuel is currently almost exhausted.

This situation is related to the fact that for almost three decades, due to lower prices for natural gas compared to coal, coal-fired power plants have not been built in Russia (with rare exceptions). And with-

The construction of coal mining enterprises in Siberia and the Far East will not only give a new impetus to the development of the Russian coal industry, but will also provide new jobs and contribute to the economic recovery of the eastern regions of Russia (currently, many of the constituent entities of the Federation located there are subsidized).

In addition, the Russian-Chinese coal dialogue focuses on a broad spectrum of economic relations - from direct trade to complex models of industrial and technical cooperation, involving mutual investment and innovation cooperation, and the search for new ways to use the coal resources of both countries, which are strategic partners.

Russia has significant, but not yet realized, scientific potential in the field of coal exploration, production and use, while China has successful practical experience. The fusion of science and practice should benefit both countries.

COURSE FOR THE DEVELOPMENT OF LARGE RESERVES AND TECHNICAL RE-EQUIPMENT OF THE INDUSTRY

The main problem with meeting domestic coal demand in China is that the main industrial centers, which account for half of the country's industrial production, are located in the south and southeast, but only 17% of coal reserves are located here. As a result, 60% of the coal produced is transported by rail over an average distance of 550 km, and although this is not very significant, large volumes of traffic generally lead to congestion of the railway tracks and even supply disruptions.

Since 1992, the state has gradually reduced its control over coal prices. But this largely led not to the liberalization of trade in this type of fuel, but to the fact that prices were set by agreement between large companies - suppliers and consumers of coal. As a result, domestic prices for 1 ton of high - quality coal are $5-7 higher than world prices. In 2009, imported coal cost China an average of $84 per ton ($111/ton from Australia and $⁸⁷ / ton from Russia), while in the Chinese market prices for high - quality thermal coal reached $115-117/ton8.

Until 2006, fearing a significant increase in electricity prices, the government still set coal prices for power plants at a lower level than for other consumers. Currently, the goal is to reduce the cost of production by developing deposits with large reserves in the provinces of Shanxi, Shaanxi, Inner Mongolia Autonomous Region, as well as in the provinces of Shandong, Liaoning, and Guizhou. By 2015, the country is expected to create 13 new coal mining bases.

In addition to increasing coal production, the PRC is seeking to carry out technical re-equipment of the industry. Otherwise, Chinese producers will not be able to compete with foreign companies that supply better and cheaper coal in the future. Therefore, modern and highly efficient mining enterprises are being created at an accelerated pace.

The construction of such enterprises is financed by the state, as well as by energy and coal companies at the expense of the long-term capital market. The investment required for the construction of a single mine with a capacity of 10 million tons per year, together with the creation of the necessary infrastructure, can be very significant and reach hundreds of millions of dollars. To provide financial support for the reconstruction of existing enterprises in the country, special government loan bonds were issued in the amount of more than $1.3 billion in 2006 - 2009.

In order to increase the efficiency of energy use in the PRC, great efforts are being made to develop coal mining and other related industries in a coordinated manner: combined coal and electricity production or so-called integrated management is encouraged: "coal-electricity-transportation". Gas production from coal seams is also being stimulated (gas resources in the country's coal fields are estimated at 35 trillion cubic meters, and production may reach 10 billion cubic meters in 2010). m), gas extraction not only contributes to the rational use of resources, but also largely ensures the safety of coal mining.

Since becoming an oil importer in 1993, China has been interested in technologies for producing liquid fuels (synthetic oil) from coal since the mid-1990s. Methods for obtaining liquid fuel by liquefying coal have been known since the 1930s, when they were actively used in Germany. However, in general, the production of synthetic oil was not particularly popular in the world due to the high cost compared to conventional oil, as well as for environmental reasons.

Industrial production of synthetic liquid fuel (SLF) can be carried out either on the basis of direct coal liquefaction technologies, or indirectly via the Fischer-Tropsch process, which involves gasification of coal and its conversion into syngas (hydrogen and carbon monoxide), then on the basis of this gas with the participation of catalysts (iron and cobalt) produce liquid products.

Currently, the world's largest producer of LPG is Sasol Limited (South Africa), which produces approximately 6 million tons of LPG per year. In 2004, China signed an agreement with this company to build two factories in Shanxi Province and Ningxi-Hui Autonomous Region. It is assumed that each plant will produce 80 thousand barrels of synthetic oil per year and cost $5 billion. Construction of the plants is expected to be completed by 2012.

China is likely to become the first country in the world to successfully implement industrial production of liquid fuels from natural gas.

coal by direct hydrogenation. In 2007, the Chinese company Shenhua Group Co. Ltd. in the Inner Mongolia Autonomous Region built the first stage of the plant with a capacity of 1.08 million tons of liquid products, of which 70% is diesel fuel. Currently, measures are being implemented to achieve stable operation of the enterprise. Shenhua Group Co. Ltd. used the accumulated international experience (including Russian) in the construction of the plant, and in 2002 Axens (France) and Nedo (Japan)were involved in ^the work9.

COAL AND ECOLOGY ARE STILL ENEMIES

The efficiency of energy use has a significant impact on energy production and consumption, and it is still lower in China as a whole than in developed countries. Although China's GDP energy intensity has declined by 20% over the past five years, this figure is still almost twice as high as in the United States.

Low resource efficiency increases the negative impact on the environment. The deterioration of the environmental situation is observed both in China itself and due to the growth of cross-border pollution in neighboring countries - South Korea, Japan, and Russia. Echoes of dust storms that periodically occur in China, even reach the United States.

According to the Ministry of Environment of the People's Republic of China, 300 million citizens of the country breathe heavily polluted air, and acid rain falls in 258 of the 488 cities and localities surveyed.¹⁰ According to the 2009 environmental health rating for 179 countries, China ranked only 121st11.

The deterioration of the environmental situation is largely due to the use of coal, however, its production and consumption continue to grow, only in Shanxi Province, which accounts for 30% of the country's coal produced, it is produced more than in Germany, Great Britain and Russia combined.

According to research by the World Bank, one of the 10 dirtiest cities in the world is the Chinese city of Linfeng, located in Shanxi province. The city, which is home to about 4 million people, has a constant smog, comparable to what Muscovites felt in August 2010. Around the city there are many mines and power plants that burn coal, which is why there is an increased content of coal dust, sulfur oxides and nitrogen in the air. And this leads to an increase in respiratory diseases.

In an attempt to improve the environmental situation in the country, the authorities have increased their control over the state of the environment. However, an increase in costs is required, which may lead to an increase in the cost of manufactured products.

The report of the environmental organization Greenpeace and the World Wildlife Fund "The real price of coal" (2009) states that every ton of coal used in China in 2007 caused environmental damage in the amount of 150 yuan*. In other words, the total annual environmental damage caused in this way in the PRC reached 249 billion rubles. RMB, or 7.1% of the country's GDP ¹². According to the report, coal burning is the main cause of air pollution in China with dust, oxides of sulfur, nitrogen, arsenic and other harmful components.

If you add to this the carbon dioxide released into the atmosphere during the combustion of coal, which increases the greenhouse effect, the damage becomes even greater. Analysts of the US Department of Energy claim that China already in 2006 overtook the United States in terms of the amount of carbon dioxide emitted into the atmosphere, and came out on top in this indicator in the world. The Chinese authorities deny this.

In this regard, it is important to note that the United States has not ratified, and China has not signed at all, the Kyoto Protocol, which limits greenhouse gas emissions (mainly carbon dioxide and methane). Thus, both countries give priority to the development of the economy, without imposing obligations to limit energy consumption. Russia ratified the Kyoto Protocol in 2004 and committed to limiting greenhouse gas emissions to 1990 levels by 2012.

At the World Climate Change Conference held in Copenhagen in 2009, China also managed to defend its interests: the documents it signed on combating global warming did not meet the requirements of the United States.-

* $1 is equal to approximately 6.66 yuan (ed. note).

there are no specific guidelines that could slow down the development of the country's economy.

In China, they do not abandon plans to" green up " the economy, but they are ready to do it at their own discretion, without pressure from the international community. The Chinese authorities recognize the deteriorating environmental situation as one of the main threats to national security: in 2007, Chinese President Hu Jintao stated this. In 2009, $150 billion, or 3% of GDP, was spent on pollution control and development of clean projects (compared to 0.8% of GDP in Japan and 0.1% in the United States) ^.13

The Chinese authorities announced their intention to use the technology of "capturing and retaining carbon dioxide"in the construction of power plants. A pioneer in the construction of such power units is Germany, which opened in 2008 the first station operating on this principle. This kind of" capture " is a set of methods that are used in the energy industry to prevent carbon dioxide from entering the atmosphere.

COAL AND SAFETY - SEARCH FOR EFFECTIVE SOLUTIONS

The most important problem for the development of coal mining in China remains the safety of work in coal mines. The fact is that coal in China is mainly extracted underground, and only 7% of the coal reserves are suitable for a safer open-pit mining method (mainly brown coal deposits in the Inner Mongolia Autonomous Region).

Coal mines in China are the most dangerous in the world, because their owners in the pursuit of profit ignore safety regulations. China accounts for 80% of the world's mining accidents and deaths. According to official statistics (according to the State Administration of Coal Mine Safety of the People's Republic of China), 3,215 people died in coal mines in China in 200814, in 2009 - 2,631 people 15, but according to trade unions, these figures are greatly underestimated, 6 - 7 thousand people die annually in coal mining. However, it is possible that these figures are also inaccurate and the death toll is much higher: according to unofficial information received from a state official involved in labor safety, this figure can reach 20 thousand people a year16. Information about accidents is received almost every week, and despite the fact that many coal mines were closed due to the high accident rate, in general, the situation has not changed for several decades.

One of the biggest disasters was a 2005 gas explosion at the Sunjiawan mine in Liaoning Province, which killed 214 people. In November 2009, a methane explosion at a mine in Heilongjiang Province killed 104 miners. In 2010, there were 13 major accidents. The rescue of miners trapped underground after water broke at the Wangjialing mine in Shanxi Province was a rare piece of good news for Chinese miners and was one of the most successful rescue operations in the history of the global mining industry. Then, after 8 days of rescue operations, 115 people out of 153 remained alive.

One of the reasons for the difficult situation with the safety of underground operations in the coal industry is that in the 1980s, at the first stage of economic reforms, the government encouraged the development of large-scale small-scale production. This was facilitated by a large population.

In 1998, there were approximately 100 large state-owned mining enterprises, 3,500 medium-sized mines owned by provincial authorities, and about 75,000 small private mines, a third of which were not even officially registered.

Subsequently, most of the small businesses were closed. In 2007, the state stopped issuing permits for the opening of mines with a production capacity of less than 300 thousand tons of coal per year. Nevertheless, in 2009, there were 11,000 officially registered small coal mines operating in the country, producing about 700 million tons of coal. most of these enterprises use outdated mining techniques and technologies.

Chinese miners can rightfully consider Vladimir Vysotsky's famous song "Black Gold"as their own:

  
  
  
 Here are the trolleys, the soul of fun, 
 They flash by, like in a movie about chases,
And the joke " You give the country coal!" 
 We feel it on our palms. 
 Blown up, stacked, chipped 
 Black, reliable gold. 
  
  
 

It is extremely difficult to compare the level of security of miners in different countries due to the lack of accurate data. And yet the terrible statistics are as follows: 1 million tons of coal mined in the PRC takes 2 or even 3 human lives, in Russia 1 million tons of coal accounts for the life of 1 miner, in Ukraine - 2 lives. Overall, the safety of Chinese coal mines is 40 times lower than in Australia or the United States (147 people died in US coal mines between 2001 and 2005).

In 1996, the State Administration of Coal Mine Safety was established in China, and in 2002, the Law on Labor Safety was adopted. To reduce accidents, it is planned to introduce mandatory deductions from coal mining (approximately $1.81 / ton) and direct them to the creation of special funds. A system of responsibility of managers for safety at work is established (in the event of an accident in the absence of managers at work, a fine of up to $7.5 million is imposed on the enterprise).

Currently, the country has set a course for further reorganization and consolidation of the coal industry, involving the closure of many small and medium-sized enterprises and the consolidation of the remaining ones into larger structures. By 2015, it is planned to close 7 thousand small mines, reducing the number of coal mining enterprises to 4 thousand, while the level of mechanization of large enterprises should reach 95%, medium-80%, small-40%.

By reducing the number of mining enterprises, the government is trying to solve two problems at once-improving the safety of miners and improving the manageability of the coal industry, since due to the strong fragmentation of the industry, it is difficult for the state to monitor the state of affairs (in 2009, 350 mining companies operated in the Inner Mongolia Autonomous Region alone).

By 2015, China plans to create 6 to 8 companies with coal production exceeding 100 million tons per year and 8 to 10 companies with production exceeding 50 million tons per year. Currently, there are 50 large companies operating in the country, each of which produces more than 7 million tons of coal per year, 22 of them with production of more than 20 million tons. The latter include the world's largest coal mining companies Shenhua Group Co. Ltd. (established in 2004, in 2009 production at its enterprises amounted to 280 million tons, with a mortality rate of 0.027 people per 1 million tons of coal, which is comparable to the same indicator for the United States and Australia) and China Coal Energy Group Co. Ltd." (established in 2006, in 2009 production of - 114 million tons).

* * *

In the foreseeable future, coal will remain the most important component of the foundation of the Chinese economy.

However, the Chinese coal industry currently faces a number of problems, the main ones being the structural disparity in coal production and consumption, the low technical and technological level of production, environmental pollution, an imperfect management system, a large number of small unprofitable enterprises, an excessive number of employees, and a high accident rate.

Increasing the requirements for occupational safety and environmental protection, as well as increasing the wages of workers, as they require, leads to the closure of small and even medium-sized coal mining enterprises, the remaining ones are absorbed by large structures.

But if the authorities continue to rely on low labor costs, non-compliance with safety standards and high levels of pollution, then no matter how fast GDP grows, the economic damage will grow even faster (according to various estimates, at present it is already 8-12% of GDP), and ultimately the economy will grow it will not make life better for most of the country's citizens.

Over the past three decades, the Chinese development model has proven resilient, combining the advantages of small business agility and the power of the public sector.

It should be noted that serious positive changes are taking place in the field of coal mining and use - the main energy source that ensures economic growth in the country, which is reflected in the restructuring and consolidation of production, the development and introduction of new resource-saving and safe technologies, improving the quality of management, attention to environmental problems and labor safety. Thus, the example of the coal industry shows that China, relying on its own strength, is actively changing the ways of ensuring economic growth from purely quantitative to qualitative.

For further development, China needs energy resources, and it is forced to use all available opportunities to generate electricity: the country is implementing a program to build nuclear power plants, and developing hydropower, wind, solar, and bioenergy.

However, only traditional types of resources-oil, gas, and, of course, coal-can actually meet the growing needs of the national economy in electricity, fuel, and raw materials for the chemical industry.

Meanwhile, the country's oil and gas reserves are limited (the old fields are largely depleted, and there are no major new discoveries yet). China is already unable to meet the economy's demand for these types of raw materials at the expense of its own production and is forced to look for large sources of supply abroad (including in Russia). In the future, oil and gas imports will only increase.

Nevertheless, coal was and remains the main energy resource of the PRC - the real "black gold" of the country. Although its share in total energy consumption in the PRC may decrease slightly in the future (due to the import of hydrocarbons, more efficient use of hydro resources, and the development of unconventional energy), the predominant importance of coal for the future development of China is indisputable.

¹ The True Cost of Coal in China. Greenpeace. 2009, p. 2 -http://www.google.ru/url?sa=t&source-web&cd=6&sqi-2&ved-0CEUQFjAF&url=http%3A %2F%2F202.152.178.208%2Fevent%2Freport%2Fcoal-briefing-en.pdf&rct=j&q=greenpeace %20real%20price%20of%20coal&ei=CNs2TamdFIHtOd7UjZQE&usg=AFQjCNHAIuBc3f Dc5slq UbUcEJaXX14tCQ&cad-rjt

² BP Statistical Review of World Energy. 2009.

³ BP Statistical Review of World Energy. 2010 - http:www:live-assets/bp_internet/globalbp/globalbp_uk_english/reportsandpublications/statist ical_energy_review_2008/STAGING/local_assets/2010downloads/statistic

^{Golitsyn M. V.} 4, Golitsyn A.M. Vse ob ugle [All about coal], Moscow, Nauka Publ., 1989, p. 6.

⁵ www.worldcoal.org/resources/coal-statistics/

⁶ Strategic partnership between Russia and China in the energy sector - http://mmergo.gov.ru/press/most_important/5186.html

⁷ China is ready to give Russia $6 billion. for coal mining / / Reuters, 25.10.2010 - http://www.vedomosti.ru/companies/news/1131158/kitaj dast_ef_6m

⁸ Strategic partnership between Russia and China in the energy sector - http://www.infogeo.ru/metalls/news/?act=show.2.news=34892

^{Krasniansky G. L.} 9, Zaidenvarg V. E., Kovalchuk A. B., Skryl A. I. Ugol v ekonomike Rossii [Coal in the Russian Economy]. Moscow, Ekonomika Publ., 2010, pp. 72-74.

¹⁰ The Epock Times, 8.01.2011 - www.epocktimes.ru/content/view/

¹¹ Ibid., 25.06.2010.

^{She Pengxiang.} 12 Officials are ready to pay a big price for economic growth / / ChinaPro. 2010, N 36 - http://www.chanapro.ru/rubrics/5/5180/

¹³ China Mining Association. China's coal mine accidents fall 13.2 pet in first nine months. 14.10.2010 - http://www.chinamining.org/News/2010 - 10 - 14/1287024998d39692.html

¹⁴ China Mining Association. Coal mine fatalities up in 1st quarter. 20.05.2010 - www.chinamining.org/News/2010 - 05 - 20/1274320951d36316.html

^Tujianjun. 15 Coal Mining Safety: China's Achiless' Heel // China Security. Vol 3. No. 2. Spring 2007, p. 38.

¹⁶ Biggest mine accidents in the world - http://top.rbc.ru/incidents/10/05/2010/404837.shtml

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