China's largest coal producing province Shanxi is set to restructure its coal industry, a move which will affect more than two-thousand mining companies. It is considered to be the largest restructuring in China.
Shanxi coal industry bureau plans to cut the number of companies involved in coal mining from 22-hundred to only one-hundred. And the number of mines will be reduced from two-thousand-six-hundred to one-thousand.
Director of Shanxi Coal Industry, said, The restructuring scheme of Shanxi's coal industry has been approved by the provincial government. More than 70 percent of coal enterprises in 11 cities have signed the restructuring agreement. Now the scheme is formally being put into practice.
The province wants all coal companies to sign the agreement by the end of August.
Following the restructuring, Shanxi will have 2 to 3 mega coal groups, with annual production surpassing hundreds of millions tons.
