China said it will slash its crude steel-making capacity by as much as 150 million tonnes and “strictly control” new coal mines in its efforts to cutback production in its steel and coal industries as the economy slows.
A government statement following a State Council meeting presided over by Premier Li Keqiang said the government had decided to adopt more rigorous standards on safety, quality, and energy consumption to eliminate outdated capacity.
“China will cut another 100-150 million tons of crude steel production based on the elimination of a 90-million-ton capacity over the years,” the statement said, adding companies could slash capacity through mergers and acquisitions, transformation or relocation.
“Second, strictly control new industrial capacity. In principle, China will stop approving new coal mines, and will adopt technological innovations for new industrial capacity,” the statement further added. It did not give any timelines for the cutbacks.