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Shanxi launches coal industry reform

By Zhao Tingting (chinadaily.com.cn)
Updated: 2009-04-17 15:45

The government of Shanxi province, which produces one-fourth of China's coal, issued an adjustment and stimulus plan to reform its coal industry in the coming years on April 15, Shanghai Securities News reported on Friday.

Related readings:  China's raw coal output up 12.8% in 2008  National plan for coal reserve bases soon  Coal stock at Qinhuangdao declines  China March coal imports jump to record high

By 2011, the province will reduce coal mines by over 60 percent to 1,000 from the current 2,600, the report said, citing Shanxi Governor Wang Jun. All coal companies should also boast annual production capacity of no less than 3 million tons with single well production capacity of no less than 900,000 tons through M&A and reshuffling moves, which have commenced and should be completed by the end of 2010.

Mechanization and professional training for coal mine staff are also required, Wang added.

"It's an exciting blueprint for Shanxi's coal industry," said Wang Shouzhen, director with the Shanxi Coal Industrial Bureau.

Shanxi also pledged to hold its production capacity to 850 million tons and build three coal producers with annual production capacity of 100 million tons and four with 50 million tons by 2011, the report said.