Hunan, China (Platts)–11 Jul 2016 451 am EDT/851 GMT
China’s State-owned Assets Supervision and Administration Commission is set to eliminate coal and steel capacity of SASAC-owned companies by 10% over the next two years and by 15% over the next five years, it said on its website last Friday.
According to a source with one of China’s top five power generators, coal mining businesses of 12 state-owned companies might be merged with the China National Coal Group.
The 12 companies include China Poly Group, China Railway Materials Co., Xinxing Cathay International Group, and China Coal Technology and Engineering Group.
There are 22 companies that are owned by SASAC, including two whose core businesses are coal mining and sales — the Shenhua group and China National Coal Group — and eight companies with integrated coal and electric power projects — China Huaneng Group, China Datang Corporation, China Huadian Corporation, China Guodian Corporation, China Electric Power Investment Corporation, State Development and Investment Corporation, China Resources Group, and China Aluminum Corporation.
China’s 25 coal mining provinces have already announced plans to eliminate a total of 800 million mt/year of production capacity from 2016 onwards, according to a report by Dexin Yongming Consultation released last Friday.
The top five provinces are Inner Mongolia that will eliminate 120 million mt/year of coal mining capacity, Shanxi with 100 million mt/year, Guizhou with 70 million mt/year, Yunnan with 70 million mt/year, and Shandong with 64.6 million mt/year, according to the report.
–Reggie Le, newsdesk@platts.com –Edited by E Shailaja Nair, shailaja.nair@spglobal.com