China to Shut Down 2,917 Small Coal Mines Through 2015

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Researched by Industrial Info Resources China (Beijing, China)--The National Development and Reform Commission (NDRC), the National Energy Administration (NEA), the State Administration of Work Safety, and the State Administration of Coal Mine Safety recently issued a report titled "Notices Regarding the Further Elimination of Inefficient Production Capacity in the Coal Industry During the Twelfth Five-Year Plan." According to the report, which was issued jointly by the four state departments, China will shut down 2,917 small coal mines, which have a total production capacity of 97.18 million metric tons, during the Twelfth Five-Year Plan (2011-15).

As all small coal mines in Inner Mongolia, Shanxi, Beijing and Jiangsu have been retired from the coal market, these regions are no longer involved in the shutdown plan.

As reported, China had achieved great progress in eliminating inefficient production capacity in the coal industry nationwide during the 11th Five-Year Plan (2006-10). A total of 9,574 small coal mines, with a total production capacity of 530 million metric tons, have been shut down nationwide. However, China still has about 10,000 small coal mines. By the end of 2015, the number of small coal mines will be reduced to less than 7,000, with the mechanization rate of exploiting at more than 55%, and mechanization rate of advancing at more than 80%.

Through years of development, the mechanization rate of large-scale coal mines, especially for those that are state-owned, has largely improved. Leading enterprises such as Shenhua Group, Huainan Mining Group and Yanzhou Mining Group have adopted advanced electro-hydraulic control systems and are working toward the use of unmanned operations.

Through merging and reorganization performed in recent years, many small coal mines have been shut down. However, there are still many small coal mines with annual output of less than 300,000 metric tons.

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