Deepening the Integration of Coal Resources and Increasing Industry Concentration

On August 25, Wenzhou presided over the executive meeting of the State Council to deploy coal mining companies for mergers and acquisitions. This meeting is an affirmation of the coal resources integration work in China's previous stage, and also proposes to further deepen the merger and reorganization of China's coal industry.

Song Zhichen, a researcher in the energy industry at China Investment Advisors, pointed out that in the national energy development plan, during the “12th Five-Year Plan” period, the degree of concentration of the coal industry will further increase. By 2015, large-scale coal enterprises with an annual output of over 100 million tons will Up to 6-8 large-scale coal companies with an annual output of 50 million tons to 100 million tons will reach 10 or more. As of the end of 2009, only two companies, Shenhua Group and China Coal Energy [9.73-1.82%], whose domestic coal output exceeds 100 million tons, can be said that the merger and reorganization tasks in the coal industry during the 12th Five-Year Plan period Quite heavy. However, at present, major coal-producing provinces in China, such as Shanxi Province and Henan Province, have already completed initial integration of coal resources, and Shandong Province, Shaanxi Province, and Inner Mongolia Autonomous Region are also about to start coal resource integration work, looking at the integration process. Coal leading enterprises in all provinces have already moved.

In terms of provinces, after Shanxi completed the integration of its coal resources, the province’s main five major coal groups, the Shanxi Coal Transportation and Marketing Group, and the Shanxi Coal Import and Export Group were the main entities in the province. By 2011, the seven major Three companies will rise to 100 million tons, and four will become super-large coal companies with a capacity of 50 million tons or more. In the past, Henan Province, where coal resources were integrated, is basically based on six provincial backbone coal companies, and proposes to By the end of 2010, three 50 million-ton-class ultra-large-scale coal companies will be built; in the recent coal mining enterprise consolidation plan announced by Shandong Province, six coal companies outside the province except Yankuang Group will be reorganized into Shandong Energy Group, and Yankuang Group Will develop independently. It can be said that the domestic coal province has already made sufficient plans for the construction of an oversized coal enterprise.

Zhang Yanlin, research director of China Investment Consulting, pointed out that for the integration of China's coal industry, especially for some provinces that have completed basic mergers and reorganizations, the next most important task is to digest the results of mergers and reorganizations. Effectively, the production capacity that has been merged and restructured can become the company's new production capacity after the related transformation is completed, and it will bring growth to the company, not just a simple allocation of property rights. The establishment of an oversized coal enterprise is the goal of industry consolidation, but it is not a fundamental purpose. The fundamental purpose is to change the problems of low coal industry concentration, serious waste of resources, and severe safety production.

The "2010-2015 China Coal Industry Investment Analysis and Prospect Forecast Report" released by the China Investment Consultant pointed out that according to the "12th Five-Year Plan" energy plan, China will further increase the coal industry's merger and integration efforts, and the coal enterprise will have a current 11,000 The number of homes has been reduced to 4,000. By the end of the “Twelfth Five-Year Plan” period, there will be 6-8 million tons of super-large coal companies and 10 large-scale coal enterprises of 50 million tons or above.

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