China's move to lift coal import tariff is expected to benefit coal-consuming firms in Ningxia Hui autonomous region, as it will cut import costs and expand coal imports.
"We plan to import 50,000 tonnes of coking coal this year, and the new tariff policy will help us save over 1 million yuan ($ 0.15 million), significantly lowering import spending and relieving our finical pressure," said Qin Wei, the General Manager of Ningxia Qinlian Energy Group Co. Ltd..
Qin Wei said with this boost, his firm will lead more coal producers in the region to sign contracts over imported coal with Mongolia.
China decides to temporarily cancel import tariff on all types of coal from May 1 till the end of March 2023. The country previously levied import tariff of 3% for lignite, anthracite and coking coal from most-favored nations, while that of other bituminous coal and other coal was respectively at 6% and 5%.
Ningxia produced 86.33 million tonnes of coal through the whole year of 2021, with bituminous coal output at 80.71 million tonnes, and coking coal at 4.42 million tonnes.
(Writing by Rebecca Liu Editing by Tammy Yang)
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