A recent report by Xinhua pointed to China unleashing a massive over haul of their coal industry. The report outlined plans to close down 4,300 coal mines, cut down 700 million tonnes worth of excessive production capacity and relocate over a million workers.
The reduction follows China’s recent coal slump, where domestic demand is expected to have contracted by as much as 4 percent in 2015. Li Junfeng, director general at the National Climate Change Strategy Research and International Cooperation Centre predicts a continuation of the decline for the coming three to five years.
The proposed reductions are just the latest in a recent string of coal cuts imposed on the Chinese industry. The past five years have seen an eradication of 560 million tonnes of coal production capacity and 7,250 coal mines.