China’s largest coal-producing province Shanxi will consolidate local producers to boost efficiency as part of the province’s modernisation and restructuring push in the coal sector. Under the plans, six local producers, including Datong Coal, Lu’an, Jinmei, and Jinneng as well as coal marketplace the China (Taiyuan) Coal Trading Centre will be merged into Jinneng Holding. The new entity will have a full play in the coal industry, the provincial government said.
In August, state-owned coal producers Shandong Energy and Yankuang agreed to merge into Shandong Energy Group Cooperation as part of the central government’s push for more restructurings and listings in the energy sector in 2020. Shandong Energy produced over 100 million tons of coal in 2019, while Yankuang’s output stood at 166 million tons last year. In 2018, China’s state-owned assets supervision and administration commission (Sasac) called for more consolidation to maintain global competitiveness.
