Chinese Coal Mining Sector to Undergo Major Restructuring
From Coal Guru
Xinhua reported that China has proposed to further reshuffle its coal industry by setting higher thresholds for the scale of coal producers and encouraging mergers to form industrial conglomerates
According to a revised draft of coal industrial policies released by the National Energy Administration, the country’s top energy regulator, to solicit public opinions on the proposals, the minimum standard for the scale of coal producers will be raised gradually.
The draft suggests that the annual output of coal companies in the country’s three major coal-producing regions Shanxi, Inner Mongolia and northern Shaanxi should be no less than 3 million tonnes.
It also says large sized coal enterprises will be encouraged to form alliances with each other or merge with smaller companies to develop big industrial groups.
The move came as China’s coal sector is seeing softening growth and plunging prices due to overcapacity and sluggish demand amid the economic downshift.
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