According to state news agency Xinhua, Shanxi’s coal production will fall by 5% this year to 620 million tonnes.
However, output is expected to bounce back 8% in 2010 to 670-700Mt.
Xinhua reported that China’s coal production would reach almost 3 billion tonnes this year while imports would exceed 100Mt.
ANZ analysts said earlier this week the coal price looked set to pull back from current highs, but didn’t expect the change for a week or two given high Chinese domestic prices.
Price precedents will likely be set this month or in January, when Xstrata finalises negotiations with Japanese customers.
ANZ said Xstrata was looking for prices in the high $US80s to low $90s per tonne while Japanese buyers were looking at the mid $70 mark.