CHINA aims to create 10 “mega” coal producers by the end of the decade as part of its drive to consolidate the industry and tackle overcapacity, China Daily reported Friday, citing an energy official.

    Wang Xiaolin, deputy director of the National Energy Administration, said China was preparing guidelines to create 10 new industry giants each with annual production capacity of more than 100 million tons.

    The report said China already has six firms with production capacity above 100 million tons.

    The China Coal Trade and Distribution Association said the new guidelines will compel coal mining regions to consolidate smaller mines over the next two years, and close those that are not restructured. It said large-scale State miners, including the Shenhua Group, China’s biggest coal producer, are also set to undergo restructuring.(SD-Agencies)