Compared with other industries, such as information technology and retailing, which have experienced significant merger and acquisition (M&A) activity in recent years, China’s coal sector has been relatively quiet.

However, under a national coal industry policy published last year, the industry is set to experience increased consolidation.

China will build six to eight coal enterprises each with a capacity of 100 million tons, and eight to 10 coal enterprises with a capacity of 50 million tons, according to the National Development and Reform Commission (NDRC), the nation’s top economic planning body.

These groups are expected to contribute more than half of China’s coal output of 2.6 billion tons in 2010.

“More M&As will occur in the coal industry, in order to boost the competence of Chinese coal producers in the world,” Liang Dunshi, vice-chairman of the China Coal Transport and Distribution Association, tells China Business Weekly.

FIND MORE NEWS IN : Coal sector set to meet consolidation goals

Find More Other News : Coal, Company, Exploration, Mine Trade & Market, Mining Finance, Mining Investment, Mining Top News