BEIJING (Commodity Online) : China’s Logistics Information Center said the country will increase its coal output this year to an estimated 3.3 billion tons to keep up with the needs of the recovering domestic economy.

In a report issued here, it said, positive factors, which include increasing steel output, stable energy prices and favorable policies, will motivate coal producers to increase their output this year.

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However, the analyst also said that there are still negative factors, such as lack of sufficient transportation capacity as well as energy-conservation and emission-reduction policies, that discourage growth in coal output.

Due to all these factors, coal prices will likely fluctuate this year, the report said,

Reportedly, coal imports this year will be about 100 million tons, a little less than last year, and exports will be about 25 million tons.

Meanwhile, China National Coal Group, parent of the country's second-largest coal miner, China Coal Energy Co Ltd saw its coal output in January amount to 12.13 million tons.

China National Coal Group in January produced 342,500 tons of coke, 12.61 million cubic meters of coal-bed gas and 544.3 million kilowatt hours of electricity.

It plans to develop new coal mines in Shanxi Province and Shaanxi Province in a bid to raise its annual coal output to 200 million tons by 2014.

In 2009, China National Coal Group's coal output hit 125 million tons. China National Coal Group expects that its profit in 2009 will hit a record 10.3 billion yuan.

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