China’s local governments are moving to save the ailing coal sector with supportive measures more forceful than in the previous year, as persistent weak demand and deep price declines continue to hit struggling miners.&nbsp;<br /> <br /> Besides Shanxi, which recently announced to further deepen measures on the coal sector, more coal-producing provinces have released supportive measures, though doubts over the actual effects remain.&nbsp;<br /> <br /> Shanxi<br /> The Shanxi provincial government will further implement the “20 Measures” unveiled in July last year, which include cutting administrative charges, eliminating illegal fees and taxes among others.<br /> <br /> Besides the continuous suspension of mine transformation fund (5 yuan/t) and mine environment recovery fund (10 yuan/t) and halving of transaction fee, the provincial government vowed to eliminate fees and taxes unreasonable or unapproved by the provincial and central government authorities, which alone will save 5 billion yuan for enterprises.<br /> <br /> It also said to fully implement financing measures the end of June 2014, and encourage miners to sign medium-to-long term contracts with end users expand market. Besides, the implementation of another seven medium and long-term measures should be accelerated in 2014.<br /> <br /> Inner Mongolia<br /> To cope with further downside pressure and ensure orderly supply, relevant Inner Mongolian authorities said it would establish a sales linkage system in the eastern part of the autonomous region, which will abide by the principle of same pricing for the same quality of coal in the same target market.<br /> <br /> Two sales zones will be established in Hulunbur and Tongliao-Chifeng-Xilingol area, led by Shenhua Group and China Power Investment Eastern Inner Mongolia Energy Corp., respectively, according to the region’s Committee of Economy and Information Technology.<br /> <br /> The autonomous region has also issued measures to speed up the development of key coal enterprises. By 2020, key enterprises will contribute 80% of the autonomous region’s total raw coal output, 75% of the total profit, according to a development plan issued by the regional government.<br /> <br /> The autonomous region will foster 2-3 enterprises with capacity of 100 million tonnes and above, and 6-7 enterprises with capacity of 50 million tonnes and above.<br /> <br /> Moreover, Inner Mongolia will support key enterprises to explore coal chemical, low calorific coal-fired power generation and coal logistics project, as well as encourage key enterprises to merger and regroup other coal producers by providing preferential policies for producers with capacity over 50 million tonnes.<br /> <br /> The government also urged financial institutions to broaden financing channels for key enterprises, and encouraged key enterprises to take part in the construction of outbound transport channels and infrastructure.<br /> <br /> Hubei<br /> The provincial government planned to control the number of coal mines within 300 by 2020, while encouraged mines located in coal-rich and well-reserved areas to expand capacity.<br /> <br /> Besides, the government will clean up illegal fees/charges, prohibit illegal fund-raising, random price hike, and forcing enterprises to buy business insurances.<br /> <br /> Fujian<br /> In order to reduce the impact from imported coal, the provincial government will strengthen the quality inspection and management of imported coal, strictly implement the central government’s differentiated tariff policy, encourage imports of high-quality coal while prohibit the import and use of low-quality coal.<br /> <br /> Besides, the government would continue to monitor and analyze the total volume of imports and exports as well as the trend of development.<br /> <br /> It will stop approving construction of new mines with annual capacity less than 300,000 tonnes, along with expansion of old mines within annual capacity of 90,000 tonnes.<br /> <br /> Mines below 60,000 tonnes of annual capacity will be eliminated by end-2015, and those within annual capcity of 90,000 tonnes will be closed by end-2018, according to the arrangement from the government.<br /> <br /> <p> Meanwhile, it will clean up illegal fees/charges and fund-raising to reduce the burden of coal enterprises. </p> <p style="text-align:center;"> <img src="/upfiles/news/image/20140609/20140609104146_1846.jpg" alt="" /> </p>