While there has been some recent fear that the government wanted to prohibit all coal imports with more than 15% ash and 0.6% sulphur content, a move that would put at least 40 million tonnes per annum of trade at risk, the government is instead banning coal with more than 40% ash and 3% sulphur.

“Lignite containing ash of more than 30% and sulphur of more than 1.5% are also prohibited,” Bloomberg reported of the new regulation, which is available from the National Development and Reform Commission website.

China Coal Transport and Distribution Association analyst Winston Han told the newswire that Chinese coal imports could fall as much as 15% to less than 300Mtpa.

The ban is effective from January 1.