Inner Mongolia, the top coal-producing region in China, has announced plans that would remove the need for coal miners to receive local government approval for corporate transfers or for merger and acquisition deals.
The new policy will allow local coal miners to follow the rules of a free market, according to authorities from the region.
Coal miners are being encouraged to restructure their businesses and get involved in upstream and downstream industries including electric power, chemicals and building materials.
Resource-rich Inner Mongolia has introduced new policies to boost its coal mining sector. Major producers of the fuel in the region have been hit hard by high transportation costs.
The low calorific content of the region's coal has also made it less competitive.
As of April 30, one-third of the mines in the region, most of which were small, had shut down or suspended production, according to the Inner Mongolia Coal Mine Safety Bureau.
The province's coal output slid nearly 10% year-on-year to 302.74 million t during Q1 2014, official data shows.
Stimulus measures that range from cutting administrative fees and transport charges for local miners to increasing financial support for those companies and lowering borrowing costs have been launched.
The deregulation measures are expected to strengthen the competitiveness of companies with major mines in the area such as Inner Mongolia Yitai Coal Group Co Ltd, Shandong Energy Group Co and Shenhua Group Corp Ltd, according to Chinese analysts.
Edited from various sources by Sam Dodson
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