Inner Mongolia, China's second-largest coal producing province in 2008, plans to set up a coal price adjustment fund, to finance key commodities reserves and adjust coal prices when necessary, the official Xinhua News Agency said on Wednesday.
It will also be used for environment restoration around coal mines, and to subsidise the winter heating costs of poor families in rural areas, the report said.
A number of other provinces, including Shaanxi and Ningxia, have already set up similar funds.
Coal producers would pay into the fund on the basis of their output, the agency reported without elaborating.
China's large coal producers, including Shenhua, have insisted this year's term price for thermal coal should rise to keep pace with higher production cost. But the country's top five power generation companies have so far refused to sign the deal.
Source: Reuters/Xinhua
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