Government Limits Coal Production... Also Explores Alternative Industries for Coal in 7 Closed Mine Areas

Ministry of Industry Holds 'Meeting Between Residents and Local Governments of Abandoned Mining Areas'

[Sejong=Asia Economy Reporter Kwon Haeyoung] The government will set a coal production limit considering domestic coal demand and inventory levels, and minimize price increases for coal and briquettes. To help mining-closed areas transition from mining-centered local economies and secure new growth engines, coal substitute industries will be discovered and nurtured by leveraging the unique strengths of each of the seven cities and counties.

On the 28th, the Ministry of Trade, Industry and Energy held a 'Mining-Closed Area Residents and Local Governments Meeting' inviting local governments and experts from mining-closed areas, announcing the '6th Long-Term Coal Industry Plan' and the 'Mid- to Long-Term Development Strategy for Mining-Closed Areas,' which are legal plans set every five years. This meeting was an opportunity to share government plans with local governments, residents' groups, and experts, and to deeply discuss the mid- to long-term development directions of mining-closed areas based on diverse and vivid voices from the field.

According to the long-term coal industry plan announced by the government, the government will set a national coal production limit considering the long-term demand forecast and inventory of domestic coal, and induce coal miners to produce coal within the limit. This is a measure to convert briquettes, a high carbon-emitting fuel, into a clean energy source. Price increases for coal and briquettes will be minimized, and the allocation of domestic coal for power generation will be maintained at about 400,000 tons annually.

To discover coal substitute industries in mining-closed areas, a substitute industry roadmap considering regional characteristics will also be established. According to the mid- to long-term development strategy for mining-closed areas, to break away from mining-centered local economies and secure new growth engines, specialized development fields for each of the seven cities and counties will be derived. Four cities and counties in Gangwon-do, where the mining proportion is relatively high and industrial infrastructure is poor, will develop industrial bases centered on forestry, tourism, and leisure, while other cities and counties will promote industrial growth focused on new industries such as future energy and pharmaceuticals.

The project structure will operate on two tracks: small-scale projects focused on infrastructure and welfare for regional environmental improvement, and large-scale projects for discovering and nurturing substitute industries. The project review process and evaluation-feedback system will be strengthened to improve fund management efficiency, and a consultative body will be formed with Gangwon-do, the seven mining-closed cities and counties, and specialized institutions to regularly share information and promote cooperative projects.

Yoo Beopmin, Director of the Resource Industry Policy Bureau at the Ministry of Trade, Industry and Energy, said, "This is a critical turning point to transform the experience of supporting mining-closed areas since the enactment of the Special Act on Development Support for Mining-Closed Areas in 1995 into a driving force for economic revitalization of future mining-closed areas." He added, "Based on this mid- to long-term development strategy that presents the specialized directions of the seven cities and counties on a large scale, local governments should proactively establish detailed strategies tailored to regional characteristics."

This content was produced with the assistance of AI translation services.