CRI听力: Shanxi's Coal Mine Restructuring Yields Positive Results

Shanxi, China's leading coal production province, is actively pushing forward the region's campaign to restructure its coal mines amidst concerns about the interest of private companies.

Our reporter Chen Xi takes a closer look.

Reporter:

Authorities in Shanxi Province, China's most important coal production base, are determined to solve the problems of wasted resources and frequent accidents by forcing small coal mines to merge with large ones.

Chen Chuanping, the vice governor of Shanxi Province, says the plan is showing positive results so far.

"In 2009, with the advances in the coal mine reconstructing, positive effects are emerging. The coal mine output is increasing month by month. The quality and benefits to the coal industry are rising. Safety in coal mines is also stabilizing and improving. In addition, the number of accidents and the death toll decreased 40 percent and 32 percent comparatively year on year."

From 2008, Shanxi has begun implementing a plan to reduce the number of coal mines from 2,600 to 1,053.

The official adds that 70 percent of coal mines, with an annual production capacity over 900,000 tonnes, will be shut down.

Small mines with annual capacity lower than 300,000 tonnes will also be phased out.

At prsent, ninety-eight percent of merger and acquisition contracts have been signed between small mines and bigger mining companies.

The restructuring of the Shanxi coal mines will force some owners of private coal mines to choose between becoming a shareholder and quitting.

Owners of small mines also worry that they will lose money if their coal mines are valued at a lower price than the current sky-high price during the merger process.
Meanwhile, the government has paid much attention to the interests of the private coal owners. (www.hXen.com)

Wang Shouzhen, director of the provincial coal industry administration, says there haven't been any complaints or appeals from private owners about the mergers.
"We should bring market principles into full play and leave the enterprises to look after the merging partner. The appraisals should be undertaken in accordance with the law, and negotiated by both parties, and the agreement should be finalized based on consensus. There have been no collective complaints caused by improper handling of private interests."

Wang Shouzhen also notes the government will further compensate coal owners in addition to the money they receive from the sale of their coal mines.

In addition, the mergers will introduce advanced production technologies and management methods into private companies.

Chen Xi, CRI News