BEIJING, Dec. 27 -- China's coal demand will rise next year to 2.5 billion tons, said Ou Xinqian, vice minister of the State Development and Reform Commission here on Wednesday.

"The domestic coal production can meet the demand," said Ou at a conference. "But shortages may occur in some regions due to inadequate railway transportation capacity."

Ou said the coal demand in east China would be met next year, but the crunch may occur in central and western China.

China's coal production capacity stands at 2.35 billion tons, with 800 million tons of capacity under development, Ou said.

This year's coal supply increased 9 percent year-on-year to 2.4billion tons, satisfying the demand. But Ou warned of overcapacity and overtime operation in some coal mines.

Ou also said the closure of illegal small coal mines would not affect supply next year. China planned to close another 4,800 small mines before mid-2008.

Chinese coal mines are known as the most dangerous in the world. The closures of illegal small mines have led to about 850 fewer deaths this year.