FOCUS: China turns to coal shutdowns, mergers to continue green reform

China is turning to mergers, acquisitions and mine shutdowns to maintain its drive toward energy reform and the use of fewer fossil fuel resources.

Shanxi is the country’s second-largest coal-producing province. It plans to shut down 32 coal mines with total capacity for 20.74 million tonnes per year in 2020, as part of the country’s drive to reduce pollution and overcapacity in the coal sector.
The plan was published in a notice from the general office of the Shanxi provincial government in July. And a detailed capacity-reduction list was attached to another notice issued by the authority.

The province achieved its capacity-reduction target during the country’s 13th Five-Year Plan (FYP) period of 2016-20, a year ahead of schedule.

Coal de-capacity is part of China’s supply-side reforms, which includes policies intended to reduce domestic coal production and to bolster...

Published

Li Min

August 11, 2020

13:18 GMT

Shanghai