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Shanxi to consolidate coal industry

(chinadaily.com.cn)
Updated: 2009-08-27 19:27

In an effort to consolidate its coal industry, Shanxi province is working to reduce the number of coal mines there from 2,598 to 1,000, China Central Television reported Thursday.

The province's 2,200 coal mining companies will also be consolidated into approximately 100 larger companies.

Eventually, the consolidated companies should each be able to produce over three million tons of coal annually, and each mine should be producing over 900,000 tons of coal. The mines, according to the government's plan, should also all be mechanized eventually as well.

Consolidation agreements between miners are expected to be complete by the end of August. Companies that are absorbed into other companies will be compensated either through payments from the government or shares in the new, larger company.