China to Tighten Approvals of New Coal Mines
China is planning to tighten approvals of new coal mines therefore eliminating all small and unsafe coal mines and to encourage the consolidation of the industry as the country plans to curb any competition. The State Council stated that the policies are aimed to curb the disorderly growth of coal production and at the same time aid the struggling coal sector that is suffering from falling prices and over capacity.
The State Council said that they will be suspending any construction of new coal mines that has a production of less than 300,000 metric tons annually and will slowly shutdown coal mines that are producing 90,000 metric tons or less in a year. Furthermore the country will continue to shut down all unsafe coal mines and will place illegally built mines under investigation. Also punishments will be increased to those caught violating the rule which is said to be several of the
Furthermore the threshold of coal imports will be increased to prevent cheap supplies from coming in and creating an over supply in the domestic market. Also the quality of these imported coals will be checked to promote high quality imports to be sold in the market.