The Chinese government is planning a radical reform of the country’s coal industry, reducing the number of coal companies from 500 000 to 4000 and merging 520 of the key enterprises into seven major groups. The plan is due to be completed by 2005.

The seven large groups are destined to be listed on international or domestic markets and will be regionally organised. China expects international competition to become more intense within the country after it joins the World Trade Organisation.

Most of the country’s 500 000 coal enterprises are small, indebted mines using old technology and causing serious pollution. Technologically the industry is around 20-30 years behind other parts of the world according to Chinese experts.