China will close more than 1,000 outdated coal mines with a combined coal production capacity of 60 million tons this year, the National Energy Administation (NEA) said.
The NEA also called for consolidation through mergers, Xinhua reported.
China will work to digest an excess capacity of coal fired electricity by controlling new projects, according to the NEA.
The China National Coal Association estimates that 5.600 of the 10,760 coal mines in the country would have to be eventually closed as a new government policy bans mines with an annual production capacity of less than 90,000 tons.
The government has already said that it would not approve any new coal mines in the next three years.
Last year, China produced 3.7 million tons of coal.