China’s Coal Squeeze Puts $2 Billion Chemicals Project on Ice

An excavator scoops up coal from an open pit in Mongolia in September 2018. Photo: Bloomberg

(Bloomberg) — China’s great coal squeeze has notched up another victim, even as prices of the mineral show signs of moderating.

Inner Mongolia Yitai Coal Co. Ltd. said on Wednesday it will suspend construction of a 16 billion yuan ($2.4 billion) coal-to-chemicals plant in northern Xinjiang near the border with Kazakhstan, writing down 2.8 billion yuan in the process.

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