Wedoany.com Report-Sept. 18, Inner Mongolia, one of China’s major coal-producing regions, has ordered 15 coal mines to halt operations after exceeding their approved production limits. This decision follows an inspection launched by the Inner Mongolia Autonomous Region Energy Bureau to address issues of overcapacity in the coal sector.

The coal mines exceeded their approved output limits.

The move is in line with China's broader strategy to manage production capacity and reduce excess output in the industry. According to a report from Reuters, a document from the Inner Mongolia Energy Bureau confirmed that these 15 mines, located in Ordos, had exceeded their authorized production by over 10% in the first half of 2025 (H1 2025).

As part of the directive, the affected coal mines have been instructed to cease operations until they undergo safety inspections. These inspections will be conducted by regional regulators, although the document did not specify when the inspections will take place.

The inspections were part of a larger initiative that began in July 2025, when China started reviewing coal production in key coal-producing regions. Local authorities were instructed to report any mines that had surpassed their production limits for 2024 and the first half of 2025.

Additionally, a document from China’s National Energy Administration (NEA), a division of the National Development and Reform Commission, outlined plans to establish a coal production reserve system by 2027. To enforce this, inspections were carried out in eight provinces to verify whether coal mines were exceeding their licensed production limits.

These regulatory actions have triggered market speculation, leading to a sharp rise in coking coal prices. The most active coal contract on the Dalian Commodity Exchange saw an increase of nearly 8%, reaching 1,048.5 yuan ($146.19) per tonne, its highest price since March 2025.