Guizhou to close 120 coal mines in 2017

Guizhou province, one of the major coal suppliers in southwestern China, plans to close 120 coal mines and cut coal capacity by 15 million metric tons in 2017 to answer the nation's call to tackle excess production in the sector.

"Although the coal industry contributes 15 percent to the province's GDP, the government has decided to cut inefficient and outdated capacity, to promote industrial restructuring and to make room for the development of service-related industries such as big data and healthcare," said Zhang Yingwei, director of the energy bureau of Guizhou, during the Guizhou Provincial People's Congress.

Guizhou surpassed the 2016 coal capacity reduction target by 11 percent through mergers and reorganization of coal companies, he said.