Coal mining industry shake-up unveiled
By Cao Desheng (China Daily)
Updated: 2004-12-03 08:54

China is working to consolidate its coal industry by establishing large-scale production bases to ensure stable supplies and safety.

A general plan on the construction of the 13 bases has been drawn up, according to a press release issued yesterday by the National Development and Reform Commission (NDRC).

Detailed plans covering coal exploitation and transportation, environmental protection and regional economic development will be worked out before the end of this year or early next year, the NDRC said.

Large coal enterprise groups will be established in these bases.

As part of the nation's medium and long-term plans for energy and coal industry development, the construction of the bases will help tap potential coal resources and alleviate energy shortages, an NDRC official surnamed Wei told China Daily.

The bases are chiefly located in the nation's major coal-producing areas such as Shanxi and Hebei provinces and the Inner Mongolia Autonomous Region in North China and Shaanxi Province in Northwest China.

Due to strained power supplies since June 2002, the central government strengthened its regulation of the coal industry since early last year.

Vice-Premier Zeng Peiyan told a coal industry conference in August that the large-scale coal bases to be built will be characterized by a combination of production, transportation, power supply and comprehensive utilization.

Large enterprise groups will be built through acquisitions, reorganizations and shareholding, the NDRC said.

About 60 per cent of the nation's energy supplies depend on coal and the situation will not change in the coming 20 to 30 years, said Dou Qingfeng, vice-director of the China Coal Industry Association.

Establishing large-scale coal bases and enterprise groups is a significant decision, he said.

According to statistics from Dou's association, the nation has around 24,000 small coal mines.

Because of some loopholes in management and outdated equipment, the coal resources in these small coal mines cannot be fully utilized and safety has become a growing concern.

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