It is reported that the State Council recently announces that in the next five years, the state will construct a new transportation channel from Inner Mongolia to the central provinces and formally incorporate Inner Mongolian power transmission channel into the national power grid construction plan.

The fact that the yield of coal and electricity outpaces Inner Mongolian traffic capacity will become history.

In recent two straight years Inner Mongolia replaces Shanxi as the largest coal-producing area. But the brisk production also exacerbates coal transportation. While with the new-built channel connecting the central and eastern provinces and Inner Mongolia, the annual coal traffic capability will at least shoot up by over 100 million tonnes. And the price of coal transported will mark down for the plunge of logistics cost, which directly reduce the domestic coal prices.

(Sourced from MySteel.net)
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