China aims to supersize coal sector through mergers

Reuters  |  BEIJING 

(Reuters) - said on Friday it plans to create several "super-large" mining companies by the end of 2020 as the world's biggest of the fuel ramps up years of efforts to streamline the sector and slash outdated capacity.

The country's (NDRC) said in a statement that by the end of 2020, plans to form a number of mega-miners, each with the capacity to produce 100 million tonnes per year of coal, which will compete on the global market and help to modernise the sector.

As of June last year, had more than 4,000 mines with total capacity of 3.41 billion tonnes a year, the National Administration (NEA) said in November. In 2016, produced 3.64 billion tonnes of

The plan follows the acquisition last year of state power company Guodian Group Corp by China's top miner Corp Ltd to create the world's largest utility.

The latest arranged marriage by the government was part of Beijing's effort to shake up its indebted and inefficient state sector, streamline the number of companies and create globally competitive firms in sectors including power generation, shipping and metals.

(Reporting by and Josephine Mason; Editing by and Christian Schmollinger)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 05 2018. 14:53 IST