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Overall Cut of Loss by Coal Industry Demanded in China
The reform process aiming to lift the coal industry out of losses has apparently lagged behind other industries not to say the overall situation and the general economic restructuring process in China, an official said Wednesday.
State Coal Industry Bureau director Zhang Baoming made the remarks when speaking at a meeting to help carry out reform and lift state-owned coal enterprises out of losses. He said that the coal industry must quicken its reform pace to ensure an all-round reversal of the situation of money losing this year.
The official also elaborated on enormous hurdles looming in China's coal production and market supply: dull demand, low price, payment defaults and loss of money by the producers.
Coal demand has been reported to decrease for 24 months running. The first quarter this year has seen a slump of 1.1 million tons over the same period last year.
The coal producers' income in the first quarter has shown 932 million yuan less for going in for commercial production.
Still, some large coal producers have by coal production even been in the red suffering from a heavy debt totaling 1.85 billion yuan, leaving only 13 run as in the profit making.
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