China to close more than 1,000 coal mines in 2016: energy bureau

[BEIJING] China will aim to close more than 1,000 coal mines over the course of this year, with a total production capacity of 60 million tonnes, as part of its plans to tackle a price-sapping supply glut in the sector, the country's energy regulator said.

In a notice posted on its website, the National Energy Administration said the closures would form part of the plan released earlier this month to shut as much as 500 million tonnes of surplus production capacity within the next three to five years.

The notice, citing administration head Nur Bekri, said China would also aim to tackle overcapacity in the thermal power sector this year by controlling new builds.

As part of its power market reforms, China would also further promote a scheme allowing suppliers to enter into direct power sales agreements with consumers, and would also work to reduce power prices this year, it said.

REUTERS