Inner Mongolia has ordered 15 coal mines to stop operations for exceeding approved output limits, part of efforts to address overcapacity issues in the sector. Beijing is aligning with this move to manage production capacity and curb excess production in the industry. The affected mines in Ordos surpassed their authorised capacity by more than 10% in the first half of 2025, as per a document from the Inner Mongolia Energy Bureau confirmed by Reuters. These mines must pass safety inspections before resuming production, although no timeline for inspections was provided. China initiated inspections in key coal-producing regions to monitor mines exceeding their production limits for 2024 and H1 2025. The National Energy Administration called for inspections in eight provinces to verify compliance with licensed production capacities, as part of establishing a coal production reserve system by 2027. This move has sparked market speculation and a surge in coking coal prices, with the most active coal contract on the Dalian Commodity Exchange rising nearly 8% to 1,048.5 yuan per tonne, its highest level since March.

Read more at Yahoo Finance: Inner Mongolia halts 15 coal mines over capacity breaches