Cuts to coal and steel capacity to meet targets

China will continue to phase out its excess coal and steel production capacity and ensure that targets set for the 13th Five Year Plan (2016-20) are met, a government notice said on Thursday.

The notice, jointly issued by the National Development and Reform Commission and five other departments, said the country will move forward with the supply-side structural reform of the steel sector, accelerate the shedding of overcapacity and encourage the green and innovative development of the sector.

The government will prohibit any increase in steel production capacity and prevent the reopening of production lines for substandard products, the notice said.

Authorities must close coal mines that do not meet the country's safety and environmental standards, and others should be cleaned up and cut inefficient production capacity, the notice said.

The number of coal mines should be reduced to 5,000 or less－down from 5,300 at the end of last year－and production by large mines should account for 96 percent of the country's total output, the notice said.

It also cautioned against planning new coal mines in national parks, reserves, tourist attractions and near protected water resources.