China's local governments enforce production cuts at coal mines

China's local governments enforce production cuts at coal mines

China’s coal-rich provinces have started to implement measures to enforce production cuts and help the coal industry get out of the current difficult time, in response to requirements of the National Development and Reform Commission (NDRC).

In an early-September meeting, the NDRC’s Deputy Director Lian Weiliang called for local governments to continue reducing coal output, setting a target of 12% year-on-year decrease or 150 million tonnes in coal production in the last four months.

Shanxi, the country’s second largest coal producer, has vowed to strengthen efforts to crack down on overproduction, strictly controlling those producing beyond their approved capacity.

The Shanxi Coal Industry Administration said in a recent provincial meeting it would conduct unannounced inspections over coal mines and strictly punish illegal operations.

It also vowed to eliminate all unreasonable fees and taxes to alleviate burdens on coal firms. A vice governor-led team is currently conducting inspections on the progress of cutting unreasonable fees and taxes.

In neighboring Shaanxi province, Vice Governor Li Jinzhu ordered the shutdown of all outdated mining operations by the end of September, while halting production at aging mines with geologic hazards.

The province will resolutely implement the NDRC’s measures to cut output by capping the total production volume while strictly prohibit overproduction and illegal mining, Li said.

Meanwhile, the Hebei provincial government has established a supervision and enforcement office to monitor overproduction at coal mines across the province.

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