Shanxi Plans Listing For Five Major Coal Groups

North China's Shanxi Province, whose coal output accounts for one third of the country's total, plans to list its five major coal groups by 2015, according to a plan recently released by the local government.

The five coal groups, whose coal output accounts for more than 50% of the province's total, are Shanxi Datong Coal Group Co, Shanxi Coking Coal Group Co, parent of the country's largest publicly traded coke producer Shanxi Coking Co Ltd<600740>, Luan Group, Yangquan Coal Industry Group Co and Shanxi Jincheng Coal Group.

The plan, which aims to raise capital for development, may also accelerate industrial consolidation, according to an official with the local government, adding that the proportion of the five groups' coal output will be increased to about 70% of the province's total.

Group listing will not only help the coal producers develop into strong multinational conglomerates, but also will protect the interests of small shareholders.

The local government said in late April that it will launch an unprecedented reform for the coal industry during the next three years, that it will cut the number of coal mines to 1,000 from the current 2,600, and that it will restrict its annual coal output to 850 million tons, according to an earlier report from China Knowledge.

Source: China Knowledge