BEIJING (Sputnik) – The coal-rich province has cut down its number of mines from about 1,700 to fewer than 800, according to the Xinhua news service. In January, China’s State Council cabinet announced that it would reduce the overcapacity in the industry in the framework of structural reforms of the country's economy.
The current plan envisions eliminating loss-making "zombie enterprises" relying on government backing or bank loans, the outlet cited an official plan on advancing supply side structural reforms.
The move would reportedly decrease Guizhou’s production capacity by 70 million metric tons.
On Monday, Chinese Minister of Human Resources and Social Security Yin Weimin said 1.8 million coal mining and steel industry workers would lose their jobs as part of the excess capacity-cutting program.
Deputy Minister of Industry and Information Technology Fang Fei announced earlier that China would spend the equivalent of $15.3 billion in two years to relocate workers in sectors suffering from overcapacity.
