China plans to phase out approximately 500-million-tonne obsolete coal production capacity in three to five years from 2016, while restructure and downsize 500-million-tonne capacity during the time, according to the opinions on resolving coal industry overcapacity released by the State Council, China's cabinet.
Meanwhile, the country plans to stop approving new coal mine projects for three years, the State council said, reported Shanghai Securities News. With the speeding-up capacity cut, China is likely to see improving concentration of the coal industry and see stake taking between large thermal power enterprises and coal companies, coal analysts say.
The country would focus on the coal industry structural reform on the supply side to achieve capacity control, structure adjustment as well as transformation and upgrading and help the industry get out of downturn, the opinions said.
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