In a move that should be watched closely by commodities investors, the National People's Congress, or NPC, is drafting an amendment to a coal law that would mandate an increase in China's strategic coal reserves, according to a report late last week by the China Economic Review.
The country already has two coal reserve bases with capacities of 5 million tons apiece. Two more are expected to be operational by the start of the new year.
This new legislation is to be completed by the year's end, and presented for discussion at the NPC next year.
Coal accounts for 70% of the energy consumption in Mainland China.