Shanxi drafts a plan to limit coal outputs

April 21 MetalBiz--Shanxi Province, China's largest coal producer, has outlined a plan to limit the growth of its coal output over the next two years, the local government announced on April 16.

Under the plan, the provincial government will facilitate the reduction of the number of coal mines in the province from about 2,600 to 1,000 by2011 by encouraging  acquisition among local coal enterprises, according to the announcement.

The local  government also warned that it will shut down some coal company  with  an  annual  output  of  less  than  3mln  tons in 2011,according to the announcement.

In addition, the government will ensure that all individual coal mines in Shanxi will have an annual output of no less than 900,000 per year and will be equipped with coal exploitation machinery.

The purpose of the draft is to improve efficiency and reduce the number of bankruptcy of local coal mines, Li  Baoqing, an official with Shanxi Development and Reform Commission, said.

The government  estimated that the measures will prevent Shanxi annual coal output in 2011 from exceeding 850mln tons, 75% of which would be  produced  by  coal enterprises with an annual output of more than 50mln tons.