China coal imports surge, prices hit record as floods add to energy woes

The problem is not its reserves, productions costs, or transportation. Renewable alternatives are just cheaper.

“I don’t believe for one moment this is linked to some of the higher level issues of relationships between China and the rest of the world.” - Mackenzie

According to Fitch Solutions, off-grid mines could benefit from reducing their dependency on diesel while taking advantage of the region's favourable climate conditions.

The mining and trading giant will cap its production of thermal and coking coal at about 150m tonnes per year, close to its planned output level for 2019.

Tension between Beijing and Canberra has grown in recent months over issues of cyber security and China's influence in Pacific island nations.

Coal and copper generate almost 70% of Mongolia's total export revenues and most of its mining output is sold to neighboring China.

While South Africa has suffered electricity shortages for more than a decade, the utility is at a crisis point and is seen as the biggest threat to the economy.

The company said it failed to reach an agreement with a client in a dispute over a mining project in Latin America, prompting it to slash its profit forecast by more than 40% for the year.

The Andean nation is the world's fifth-largest exporter of coal.