The State Environmental Protection Administration (SEPA) found Tangshan, in Hebei province, had closed or cleaned up heavily polluting plants, and some new projects could proceed, the agency announced on its Web site (www.sepa.gov.cn) late on Monday.

The agency also said it had lifted restrictions on Hong Kong-listed Datang International Power Generation Co., which had been accused of skirting environmental approval rules for a power project in Tangshan.

SEPA had banned dozens of industrial projects in January as the Chinese government sought to strengthen environmental controls in an effort to rein in both pollution and unfettered investment.

Tangshan, whose abundant coal has attracted heavy industrial investment, shut down or upgraded dozens of small steel mills, coke plants and factories, SEPA's vice director Pan Yue said.