Enhanced Quality Control of Imported Coal in China

A recent change to the regulations in relation to the quality of imported coal has resulted in Members experiencing difficulties such as delays to the vessel or rejection of cargo.

Measures to Reduce

Air Pollution In January 2015, a number of ministerial departments, headed by the Chinese National Development and Revolution Committee, brought in measures that are intended to reduce air pollution in China by ensuring that imported bulk coal cargoes, and coal intended to be transported over 600km internally, meet minimum standards for quality and that limits are applied to certain elements of coal deemed to be particularly harmful.

Ash and sulphur content are now heavily restricted. The general restriction specifies that brown or lignite coal should have an ash content that does not exceed 30% and a sulphur content that does not exceed 1.5%.

For all other coal the limits are raised to 40% and 3% respectively.

In addition to the above, mercury levels must not exceed 0.6µg/g, arsenic 80µg/g, fluorine 200µg/g, phosphorus 0.15% and chlorine 0.3%.

Further restrictions apply to coal transported over 600km internally in that the ash and sulphur content of brown or lignite coal must not exceed 20% and 1% respectively and the coal must have a minimum calorific value of 16.5MJ/kg. For other coals these limits are increased to 30% and 2% respectively for ash and sulphur content with a minimum calorific value of 18MJ/kg.

Where bulk coal cargoes are delivered within the areas surrounding Beijing, Tianjin, Hebei province, Yangtze Delta area or the Zhujiang Delta area further restrictions apply limiting ash and sulphur content to 16% and 1% respectively.

As a result of these measures cargoes originating from Australia, South Africa, Vietnam and Indonesia have already been rejected.

In order to ensure that Members shipping coal into China do not face delays or the risk of their cargoes being rejected, charterers and/or shippers should be requested to provide an appropriate analysis report prior to the commencement of loading confirming that the cargo meets the Chinese authorities’ requirements. 

Consideration should also be given to adding a suitable clause to all charter parties requiring the charterers to guarantee that all cargoes shall be lawful merchandise and an undertaking to provide a similar confirmation from shippers.