China's Major Coal-production Region Slashes Overcapacity
Jichang Mine in Dushan County, Guizhou province, was shutting down. Image: dushan.gov.cn
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 less than 800 from about 1,700 since 2013, and 80 more is expected to be closed this year, said a provincial energy administration spokesman.
Guizhou is the largest coal producer in southern China with the country's fifth largest proven reserves. The move to shut down coal mines is part of a national campaign to cut overcapacity amid dwindling demand in the coal industry.
Earlier this month, the State Council issued a guideline stating no new coal mines would be approved in the following 3 years and the country will shut down 500 million tonnes of capacity and consolidate another 500 million tonnes into the hands of fewer efficient mine operators in the next 3 to 5 years.