China's major coal-production province slashes overcapacity

GUIYANG -- Guizhou, one of the country's major coal-producing provinces, will shut down or renovate coal mines with annual capacity under 300,000 tonnes this year in a bid to cut obsolete capacity, local authorities said Tuesday.

Through closures, mergers and acquisitions, Guizhou will slash all collieries with annual production capacity under 300,000 tonnes, according to a plan issued by the provincial government on Monday.

By 2020, Guizhou aims to have all the coal mines with annual capacity of 300,000 tonnes or above, and large and medium scale mines account for over 80 percent of the total number of coal mines in the province.

Guizhou will give subsidies to closed coal mines to help with the resettlement of staff, transformation of mine companies and pay the debts.