Coal shortage expected to worsen; coal firm eyes expansion through IPO
28 February 2005
China's increasing demand for coal is causing a dire shortage, which could lead Beijing to lift import quotas, raising global prices, state media reported. Since the power industry consumes 50% of China's coal, the government is said to be concerned that a coal shortage may spark social unrest. Meanwhile, to fund its expansion and enable more output, China's second-largest coal firm, the National Coal Group, was reported to be considering an international initial public offering in the next 18 months.