Amid a global shift toward cleaner energy and domestic reforms in industrial upgrading, China's coal sector has undergone a remarkable transformation in 2025, marked by a sweeping restructuring, embracing innovation, digitalization, and green development.

1. Continued push for mergers and reorganization

2025 saw an accelerated pace of strategic mergers and restructuring, with Guizhou and Henan emerging as frontrunners.

In Guizhou, energy giant Guizhou Energy Group acquired Wujiang Energy, integrating annual coal production capacity of 46.35 million tonnes, hydropower capacity of 6.8 GW, and proven shale gas reserves of 80 billion cubic meters.

Meanwhile, in Henan, Henan Energy Group joined forces with the industrial heavyweight China Pingmei Shenma Holding Group, forming a vertically integrated chain linking 28.4 billion tonnes of coal reserves to an annual output of 1.5 million tonnes of nylon-based advanced materials.

Nationally, strategic consolidation efforts have extended across central state-owned enterprises (SOEs), local SOEs, and large-sized private companies.

Shandong Energy Group, for instance, held multiple restructuring meetings throughout the year, targeting the integration of its geological exploration, equipment manufacturing, and logistics and trade arms into a modern, synergized industrial ecosystem.

China Shenhua Energy, the country's largest listed coal company, announced plans in December 2025 to acquire 12 key subsidiaries from its parent, China Energy Investment Corporation (CHN Energy), via cash and share issuance worth 133.6 billion yuan ($19 billion). This mega-deal consolidates assets across coal production, pithead power generation, coal chemicals, and logistics.

2. Tech innovations to new level

2025 also marked a technological leap forward in coal-related science and engineering, with breakthroughs spanning mining automation, ecological protection, new-energy applications, and industrial materials.

In March, Shaanxi Coal and Chemical Industry Group (SHCCIG) demonstrated the country's first fully unmanned mining system for thin and ultra-thin coal seams.

In June, CHN Energy, in collaboration with China University of Mining and Technology, unveiled a new ecological mining framework for open-pit operations. It combines coal mining loss-reduction techniques with water conservation and ecological restoration.

December saw the successful launch of a group of internet satellites aboard a Long March 8A carrier rocket. Uniquely, the rocket was powered by coal-based aerospace kerosene, a novel fuel developed from coal, which is cheaper, cleaner, and logistically easier to store.

Additionally, a shaft project at Shandong Gold's Sanshandao mine, undertaken by China National Coal Group's construction arm, set a new Asian record, reaching a depth of 2,005 meters, surpassing its previous record of 1,551.8 meters.

In rail technology, China achieved a world first with a 35,000-tonne heavy-haul train operating in a virtual coupling mode, no physical linkage needed.

In November, a high-performance carbon fiber project in Datong, North China's Shanxi province, was completed and put into operation, a breakthrough in China's efforts to mass-produce T1000-grade 12K small-tow carbon fiber domestically, CCTV reported.

3. Smart construction advances

Intelligent mining has shifted from pilot projects to scaled deployment. In February, CHN Energy began joint trials for its first unmanned diesel locomotive at the Haerwusu loop line. By May, 100 electric autonomous mining trucks were operational at Huaneng Yimin open-pit mine.

In April, the State Power Investment Corporation passed industry certification for China's first full-scenario unmanned open-cut mine in Inner Mongolia, using dual-driver AI systems. This signals a new phase in China's mining intelligence.

4. Greener and cleaner development

In October, Phase I of the first coal-to-gas demonstration project in northeastern China was completed in Liaoning. This helped ease regional energy shortages while transitioning Fuxin from a coal city into a clean energy hub.

In November, a wholly-owned subsidiary of SHCCIG successfully injected CO2 into the Yutan-1# well under the 4-million-tonne carbon capture, utilization, and storage (CCUS) project.

December saw the launch of China's first 10-million-tonne coal gangue recycling facility in Datong, Shanxi, converting waste coal byproducts into high-value construction materials.

5. Global reach expands

Yancoal Australia, a subsidiary of Yankuang Energy Group, raised its stake in the Moolarben Joint Venture to 98.75% by acquiring an additional 3.75% interest for A$110.5 million in October.

In June, Shandong Energy Group shipped its first batch of domestically produced hydraulic supports to Australia, breaking an import monopoly and setting a new benchmark in high-end coal machinery exports.

China National Coal Group expanded into Kazakhstan with its first full-package export of intelligent coal mining equipment. It also exported corrosion-resistant supports to Belarus and smart hydraulic supports with China-made electro-hydraulic systems to Russia.

Xuzhou Mining Business Group, with two decades of operations at Barapukuria coal mine in Bangladesh, reported cumulative revenue of $280 million and 3.9 million tonnes of coal output by September 2025. Its engineering arm is now present in over 20 countries, delivering services across 110 power projects. In Indonesia, it contracted to build the largest vertical shaft of its kind in the southern hemisphere.

Meanwhile, China Coal Technology & Engineering Group opened a new subsidiary in Jakarta in September, its first full-spectrum overseas branch in Southeast Asia. The company will manage coal mining solutions, from market development to equipment supply and technical services.