Cutting small mines

A notice by National Bureau of State Land and Resources early this year has suspended Erdus coal exploration licences until December, 2008.

Mining licences are also suspended by the notice.

The Central and Erdus governments have taken vigorous action in recent years to regulate coal mines. In 1998, there were more than 1990 coal mines in Erdus, but now there are only 276 mines remaining. Most small private enterprises either shut down or merged with big operations.

In October 2005, the government of Inner Mongolia Autonomous Region released a statement on coal mine regulation, ruling that coal mines with an output below 300,000 tons should be closed or merged.

In addition, all existing coal mines are required to undertake technical innovation that includes comprehensive and sophisticated equipment costing hundreds of millions of yuan. The requirement discouraged most small private enterprises.

China Business Weekly News

(China Daily 06/25/2007 page3)