China to create several mega coal firms by 2020

China will form a number of ultra-large coal mining companies by the end of 2020 as part of its efforts to streamline the bloated sector and cut outdated capacity, according to the country's top economic regulator.

The National Development and Reform Commission said that through further mergers and acquisitions (M&As), the world's largest producer of coal plans to create several coal-mining conglomerates, each with an annual production capacity of more than 100 million metric tons by the end of 2020, to compete in the global market.

The country will vigorously promote coal mining enterprises of different sizes, regions, ownership, and coal types to carry out M&As to foster a batch of modernized coal enterprises by the end of 2020, said the NDRC and 11 other ministries and organizations.