China to Establish 10 Coal Enterprises of 100 Million Metric Tons Each in Five Years

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Researched by Industrial Info Resources (Sugar Land, Texas)--China is planning to establish 20 extra-large coal enterprises through merging and reorganization in the next five years, according to Zhang Guobao, the director of the National Energy Administration, at a national energy working conference recently held in Beijing. Of these, 10 will have capacities of 100 million metric tons each, and 10 will have capacities of 50 million metric tons each.

During the 12th Five-Year Plan, China will accelerate merging and reorganization among coal-mining enterprises. The merging and reorganization will not be limited by region or industry. All kinds of enterprises are encouraged to take part, Zhang said.

Meanwhile, China will establish 14 large-scale coal bases nationwide. By 2015, the output of these coal bases will account for 90% of the nation's total output.

So far, China Shenhua Group (Beijing) and China National Coal Group Corporation (China Coal) (Beijing) are the only coal enterprises with annual coal outputs of more than 100 million metric tons in China. As the largest coal producer in China, Shenhua Group's coal output and coal sales volume reached 327.6 million and 357.2 million metric tons in 2009; as the second-largest coal producer in China, China Coal's annual coal production capacity surpassed 160 million metric tons. China Coal also has 22 coal preparation plants, with a total production capacity of 120 million metric tons.

In order to save resources and improve safety in coal mining, China's major coal-producing provinces, such as Shanxi and Henan, started an integration program for mining rights several years ago. In the next five years, China will continue to conduct mining rights integration in Shanxi, Xinjiang and other new mining zones. New developments will be concentrated mainly in the Shanxi, East Inner Mongolia, Ordos, Southwest China and Xinjiang regions, as coal reserves in these areas surpassed more than 70% of the nation's total reserves.

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