China Daily has an interesting article today (And CCTV Int-English has the video report) about China's changes to their 1996 Coal Industry Law which will introduce strategic coal reserves.  China, like many countries, already has a petroleum reserve (though, presently, at only 10 million tons, it only represents a tiny 10 days consumption as compared to the US SPR of 50 days).

Introducing coal reserves is a somewhat curious step.  Of course, in the normal business cycle in a free market, coal suppliers and customers will maintain certain surplus inventory to insure against supply disruptions and cover their needs during the interrim period.   Since China's coal consumption is nearly 100% domestically produced, the arguments about the security of the supply that apply to oil do not logically carry over to coal.

On the other hand, it makes perfect sense if the government is trying to gradually improve a dismally unsafe and underregulated coal-mining industry.  If China believes the chance of major mine accidents, or the need to shut down certain mines, is sufficient to cause large mines to suspend operations, a national reserve will give the government more freedom to act while avoiding a sustained supply crisis.