Yankuang to continue to shut coal mines despite short-term price hike

Yankuang Group, Shandong province's largest State-owned coal company, will continue to shut down outdated capacity and develop clean coal technologies to cope with a fluctuating market, according to its top executive.

"Though coal prices have risen in the past few months, the general trend of downsizing capacity, especially outdated capacity, is not going to change," said Li Xiyong, chairman of Yankuang Group.

The price of power-coal at Qinhuangdao Port rose from 370 yuan ($53) per metric ton at the beginning of the year to 550 yuan per ton in September. Yankuang is concerned that the rising prices could tempt the slashed capacity to resume production, albeit secretly, against the central government's policy to cut capacity.