China will not be net coal importer in 2008: association

BEIJING (Reuters) - China's National Coal Association denied on Monday the country would be a net coal importer in 2008, citing sufficient reserves, but acknowledged that imports would increase steadily in coming years.

China became a net coal importer for the first time in the first half of 2007, and some analysts expect the country to become a net importer again in the near future, possibly as soon as this year.

The world's top producer and consumer of coal, its booming economy has given it an apparently insatiable appetite for the fuel that already provides more than two-thirds of its energy.

"In the last five years, coal imports have increased three and a half times. And it will continue to increase hopefully in the days to come. The trend will continue," said Wang Xianzheng, president of the China Coal Association.

But asked if China could emerge as a net coal importer again this year, association vice chairman Wang Guangde ruled it out.

"No, it's not possible," he told Reuters on the sidelines of the Coaltrans conference in Beijing, adding that the country's 2008 exports would be roughly equivalent to last year's.

China uses coal because it has relatively cheap and abundant domestic supplies, despite worries about massive pollution and rising emissions of greenhouse gasses, which may already have overtaken U.S. levels.

Demand will keep close pace with output, and is expected to exceed 3 billion tonnes in 2010, when production capacity will be more than 3.1 billion tonnes.

Last year, production capacity was 2.54 billion tonnes versus 1.42 billion tonnes in 2002. Firms are eyeing projects to add 1.10 billion tonnes, of which 200 million tonnes have already been approved.