Inner Mongolia Kicks Off Reorganization of Coal Sector

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Researched by Industrial Info Resources China (Beijing, China)--Following the reorganization carried out in the coal sector in major coal production regions such as the Shanxi and Henan provinces, Inner Mongolia, another important coal producer in China, kicked off provincial-level reorganization of its coal industry recently.

On March 16, more than 200 leaders and representatives from about 100 major coal production enterprises in Inner Mongolia, together with persons in charge of the industrial management department, safety supervision department, development and reform commission, land resources administration of major coal producing cities and counties, attended the Mobilization Conference Regarding the Reorganization of Regional Coal Enterprises, which was held in Hohhot, the capital city of Inner Mongolia.

According to the Coal Enterprises Merging and Reorganization Scheme, by the end of the 12th Five-Year Plan (2011-15), the coal output in Inner Mongolia will be controlled within 1 billion metric tons. Underground coal mines with a capacity of 1.2 million metric tons or more, and above-ground coal mines with capacities of more than 3 million metric tons will account for more than 70% of the total production capacity. By the end of 2013, the minimum size of coal production enterprise in Inner Mongolia will be 1.2 million metric tons per year. By the end of 2015, all coal production in Inner Mongolia will be mechanized.

According to the plan, the number of coal production enterprises in Inner Mongolia will be further reduced from 500 to about 80 to 100 enterprises by merging and reorganization. This will result in one or two 100-million-metric-ton enterprises; five or six of 50-million-metric-ton mines; 15 to 16 mines with production capacities of 10 million metric tons, and 20 large-scale coal production enterprises with annual sales income of more than 10 billion yuan ($1.5 billion) by the end of 2013.

Detailed specifications regarding the merging and reorganization are also provided in the plan. Detailed plans and objectives will be completed in the first half of this year, while implementation will last from the second half of this year to 2013.

As the city with the largest coal reserves in Inner Mongolia, the number of coal enterprises in Ordos will be reduced from 300 at present to less than 40, including 1 or two extra-large coal producer(s) with an annual production capacity more than 100 million metric tons.

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