China called for further mergers and consolidation in its massive coal industry to eliminate outdated capacity and improve efficiency, its cabinet, the State Council, said on its website on Thursday Beijing will support both state-owned and privately-owned coal companies to conduct mergers and acquisitions, not only within the coal industry, but also in the power, metallurgy and chemical industries mainly through equity transactions and shareholding, as discussed at a State Council meeting this week.
China is the world's largest coal producer and consumer, but its highly fragmented coal industry has long been plagued with a poor safety record as well as inefficient and polluting mining operations.
For the past few years, the government has vowed to cut down on the number of dangerous and polluting small coal mines, for a more consolidated industry.
The country's top coal-producing province Shanxi launched a consolidation drive last year to reduce the number of coal miners and shut small mines. But some blamed the provincial government for trying to push out private ownership in the sector.
The government will also issue taxation and financing policies to assist coal mines that are bought to improve safety conditions and technology, the State Council also said.
Share prices of all coal companies listed on the Shanghai and Shenzhen exchanges rose on Thursday, with Zhengzhou Coal Industry and Electric Power Co Ltd jumping to its 10 percent daily limit.
China's top coal miners are Shenhua Group Corporation, parent of China Shenhua Energy Co, and China National Coal Group Corp, parent of China Coal Energy Co.
Source: Reuters
China is the world's largest coal producer and consumer, but its highly fragmented coal industry has long been plagued with a poor safety record as well as inefficient and polluting mining operations.
For the past few years, the government has vowed to cut down on the number of dangerous and polluting small coal mines, for a more consolidated industry.
The country's top coal-producing province Shanxi launched a consolidation drive last year to reduce the number of coal miners and shut small mines. But some blamed the provincial government for trying to push out private ownership in the sector.
The government will also issue taxation and financing policies to assist coal mines that are bought to improve safety conditions and technology, the State Council also said.
Share prices of all coal companies listed on the Shanghai and Shenzhen exchanges rose on Thursday, with Zhengzhou Coal Industry and Electric Power Co Ltd jumping to its 10 percent daily limit.
China's top coal miners are Shenhua Group Corporation, parent of China Shenhua Energy Co, and China National Coal Group Corp, parent of China Coal Energy Co.
Source: Reuters
No comments:
Post a Comment