China coal hub Shanxi to merge five giant state-owned miners as part of efficiency drive
- Shanxi province will merge five coal companies into a single entity called Jinneng Holding Group, creating the country’s second largest coal producer
- Government-led merger, which involves trillions of yuan in assets and thousands of employees, is the latest effort to improve efficiency in the coal industry
The move, aimed at increasing efficiency in China’s fragmented coal industry, is part of Beijing’s drive to improve the operation of state-owned enterprises, which are still considered the backbone of the economy.
The provincial government of Shanxi will amalgamate the five coal companies into a single entity called Jinneng Holding Group, according to an official notice published last week by Jinneng Group, the coal power conglomerate leading the consolidation.
The new holding company will also absorb assets from Datong Coal Mine Group, Shanxi Jincheng Anthracite Mining Group, a new company founded by Yangquan Coal Industry Group and Shanxi Lu’an Mining Industry Group. Three firms – Datong, Yangquan and Lu’an – are on the 2020 Fortune 500 list of the world’s largest enterprises ranked by sales revenues.
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The Taiyuan Coal Exchange Centre, China’s largest coal market, will also become part of the new entity.