Resource-rich Shanxi province will fully reform its coal and coke road haulage system, eliminating outbound sales permits and inspection stations effectively from December 1, said Governor Li Xiaopeng at a government meeting on November 18. 

The province will completely cancel delegated administrative power to relevant enterprises for the levy of various fees on coal and coke sales to other provinces in the rest of the country and stop those without required permits.

Outbound sales permit, which is needed for getting coal and coke out of the province through road, will be eliminated from December 1, and all the inspection stations across the province will be removed before the end of the year, Li said.

The move came amid the government’s campaign to clean up coal-related illegal fees and taxes to ease the cost burden facing coal and coke producers, which have been struggling with weak demand and low prices.

Industry insiders welcomed the move, expecting a 10-20 yuan/t drop in the cost for coal and coke sales to the rest of the country.

For the past three decades, Shanxi Coal Transport and Sales Group Co., Ltd. (SCTSG), a subsidiary of the provincial-owned Jinneng Group, has been dominating over coal sales through road to end users inside and outside the province.

With numerous inspection stations set up across the province, SCTSG has been collecting various fees on behalf of the government, ranging 5.5-40 yuan/t.

Shanxi Coke Group Co., Ltd. has been responsible for management of coke sales by road to end users in and out of the province.