Monday, April 20, 2009

China To Close Almost 40 Per Cent Of Coal Mines Over Next Three Years

China's Shanxi Province will launch an unprecedented reform in its coal industry over the next three years, with the number of coal mines cut to 1,000 from the current 2,600, according to a decision announced by the local provincial government on Wednesday.

By 2011, Shanxi, whose coal output accounts for one third of the country's total, will restrict its annual coal output to 850 million tons.

The local government also aims to develop three large coal enterprises each with an annual capacity of 100 million tons and another four large coal companies each with an annual capacity of 50 million tons, with their total output accounting for 75% of the province's total.

Some industry insiders have said that the consolidation will significantly reduce the accident rate in coal mines since the government has vowed to close over 60% of the mines in the province, and that the reform will be environmentally beneficial.

Source: China Knowledge

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