Inner Mongolia, a major coal-producing region in China, has directed 15 coal mines to cease operations after exceeding their approved output limits, reported Reuters. 

The decision follows an inspection initiated by the Inner Mongolia Autonomous Region Energy Bureau aimed at addressing overcapacity issues in the sector. 

The move aligns with Beijing's efforts to manage production capacity and limit excess production in the industry. 

A document from the Inner Mongolia Energy Bureau, confirmed by Reuters, revealed that 15 mines in Ordos had exceeded their authorised capacity by more than 10% in the first half of 2025 (H1 2025). 

The affected mines are instructed to halt production and can only resume after passing safety inspections conducted by regional regulators. 

However, the document did not specify when these inspections would occur, said the Reuters report. 

In July, China began a series of inspections in key coal-producing areas, instructing local authorities to report on any mines surpassing their production limits for 2024 and H1 2025. 

A document stated to be from China’s National Energy Administration (NEA) called for inspections in eight provinces to verify if coal mines were exceeding their licensed production capacities. 

The NEA is a part of the National Development and Reform Commission, which finalised regulations to establish a coal production reserve system by 2027. 

The move led to a rise in market speculation and a surge in coking coal prices. 

The most active coal contract on the Dalian Commodity Exchange increased nearly 8% to 1,048.5 yuan ($146.19) per tonne, its highest level since March.