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Guizhou shuts 183 mines to cut capacity
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Guizhou, one of China’s major coal-producing provinces, shut down 183 mines in 2015 in a bid to cut obsolete capacity, according to local authorities.
Through closures, mergers and acquisitions, Guizhou has reduced its number of collieries in operation and under construction to below 800 from about 1,700 since 2013, said a spokesman for the provincial energy administration yesterday.
It aims to close more than 80 others this year, said the spokesman.
Guizhou is the largest coal producer in south China, with the country’s fifth-largest proven reserves.
The province’s move is part of a national campaign to cut overcapacity amid dwindling demand and falling prices in the coal industry.
Last year, China’s coal-rich Heilongjiang Province also shut down 233 coal mines, removing 13.11 million tons of obsolete capacity, according to the provincial work safety authorities.
Heilongjiang has proven coal reserves of around 24 billion tons, accounting for more than 70 percent of the total coal reserves of the country’s three northeastern provinces.
However, more than 95 percent of its coal mines are small with an annual production capacity of 300,000 tons and below. They generally feature outdated facilities, poor management and pollution.
Another coal-producing giant, Shanxi Province, has decided to keep production under 1 billion tons per annum for the next five years. Its production in 2015 totaled 944 million tons.
Shanxi has produced about a quarter of China’s coal since 1949.
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