Coal producers awarded for cutting production
Shanxi, China’s leading coalproducing province, has awarded nearly $47 million to six stateowned coal producers for cutting production.
The six pledged to slash coal production capacity by a combined 10.6 million tons per year, with Datong Coal Mine Group promising the biggest cut of 3 million tons per year.
Central China’s Henan province plans to award $326 million to coal and steel producers this year for cutting production. The funds will compensate workers whose employment has been affected due to cuts in overcapacity, said the Henan provincial department of finance.
The country has adopted a combination of measures to make cutting overcapacity an economic priority. China has vowed to cut steel capacity by 100 to 150 million tons by 2020, including 45 million tons in 2016. This year’s target to slash coal capacity is 250 million tons.