China is not only refusing to phase out coal—it’s transforming the industry with advanced automation, defying international climate calls while boosting profits. One standout example is the Dahaize Mine in Shaanxi province, which has embraced artificial intelligence to run its coal operations with minimal human labor.
Despite falling coal prices, the mine achieved a striking 40% profit margin in 2024. With energy security and strong returns, coal remains a key part of China’s energy strategy, regardless of climate pledges.
According to a report by the South China Morning Post, the Dahaize Mine is “rewriting the rules of the industry.” Automation has cut the need for large labor forces. CEO Liang Yunfeng says each worker now generates nearly $1 million in output annually.
The mine uses AI to map and extract coal with great precision. Drones inspect mine shafts, while robots handle repairs. Autonomous trucks, guided by underground GPS systems, navigate dust-filled tunnels to deliver coal to AI-operated washing plants. In one such plant, a single worker can process up to 1,100 tons of coal each day.
This technological leap comes as China rapidly expands its coal infrastructure. In 2024, the country accounted for 93% of new global coal power construction starts, according to data from the Global Energy Monitor and the Center for Research on Energy and Clean Air. The government approved 66.7 gigawatts of new coal-fired capacity—roughly the output of 66 large plants.
China’s move to double down on coal clashes with international pressure to curb the use of fossil fuels. European Union Ambassador Jorge Toledo said many observers are “puzzled” by China’s continued coal buildout, especially when some projects could become stranded assets due to global decarbonization trends.
Yet official Chinese documents show no intention of slowing down. As reported by The Guardian, Beijing has pledged to “continue to increase coal production and supply capacity” and to strengthen coal’s role as a key energy source.
At the same time, China leads the world in renewable energy investment. The country’s spending on clean energy in 2023 nearly matched total global fossil fuel investment. Experts predict China could hit its peak emissions before its 2030 target. Still, fossil fuels make up about 70% of China’s energy mix, as the integration of renewables struggles to keep pace with added capacity.
China’s choices have massive global consequences. As the largest energy consumer, coal user, and carbon emitter, the country plays a critical role in whether the world can meet climate targets. While China’s renewables boom is impressive, its continued focus on coal undermines global emissions goals.
What’s happening at Dahaize is not just about coal—it signals a wider shift toward automation in China’s economy. “Dahaize proves that smart tech can sustain both productivity and profitability—even as Western economies struggle with wage inflation,” notes the South China Morning Post. Some Chinese experts warn that Western labor models risk falling behind if they fail to adapt to this high-efficiency, tech-driven approach.