China aims to supersize coal sector through mergers – by Muyu Xu and Josephine Mason (Reuters U.S. – January 5, 2018)

https://www.reuters.com/

BEIJING (Reuters) – China said on Friday it plans to create several “super-large” coal mining companies by the end of 2020 as the world’s biggest producer of the fuel ramps up years of efforts to streamline the fragmented sector and slash outdated capacity.

The country’s National Development & Reform Commission (NDRC) said in a statement that by the end of 2020, China plans to form a number of mega-miners, each with the capacity to produce 100 million tonnes per year of coal, which will compete on the global market and help to modernize the sector.

Last year, China had more than 4,000 coal mines with a total capacity of 3.41 billion tonnes a year, the National Energy Administration (NEA) said in November.

Only six of China’s coal mining companies are currently capable of producing more than 100 million tonnes per year, according to the China National Coal Association. Those include top coal miner Shenhua Group, China Coal Energy Group and Datong Coal Mine Group [DTCOA.UL].

The NDRC’s plan follows the acquisition last year of state power company China Guodian Group Corp by Shenhua to create the world’s largest utility.

For the rest of this article: https://www.reuters.com/article/us-china-coal/china-aims-to-supersize-coal-sector-through-mergers-idUSKBN1EU0Q8

 

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