Coal industry mergers and acquisitions gain push, and mining equipment presents business opportunities

“One of the biggest highlights of the “Opinions” is that the merger and reorganization of coal mining companies in the future will break the regional boundaries and make the integration of coal resources more market-oriented, rather than being confined to the provinces as in the past. Such a policy will be favorable to coal. The company has achieved greater development because the adverse factors have been further weakened and the coal industry will usher in a golden period of development."

Recently, the General Office of the State Council forwarded the “Some Opinions on Accelerating the Merger and Reorganization of Coal Mine Enterprises” issued by the National Development and Reform Commission. Li Chaolin, a Chinese coal marketing expert, made the above evaluation when talking about “Opinions”. He believes that the strategic significance of the "Opinions" has been very clear, is to make the coal industry bigger and stronger, through the combination of administrative and market methods, and firmly accelerate the merger and reorganization of coal mining companies.

Mergers and reorganizations to change scattered problems For a long time, the long-rough development of the coal industry in China has accumulated serious contradictions. According to the experts from the China Coal Industry Association, under the current situation of increasing the elimination of high-energy-consuming industries and actively promoting energy-saving and emission-reduction, the increase in coal demand has declined, and the pressure for overcapacity has become increasingly evident. At present, there are as many as 112,000 coal mining enterprises in the country, and the average annual production capacity of the enterprises is less than 300,000 tons. There are widespread problems such as low industrial concentration, backward technology, low coal resource recovery rate, waste of resources, and environmental pollution. Because of the scattered and small features of coal mining enterprises, the production and management of resources is very complicated. In the case of difficult supervision, a large amount of waste of coal resources also occurs frequently.

“Some coal mine enterprises lacking supervision and management have ignored the resources of inferior small blocks of coal and caused serious waste of resources.” Li Chaolin said, “The merger and reorganization of coal mining enterprises is inevitable, and mergers and reorganizations will help strengthen industry management. It is conducive to the rational exploitation and use of resources."

Li Chaolin pointed out that the promotion of mergers and acquisitions by coal mining companies is also a need for coal mining companies to achieve safe production. According to reports, China's coal mines have many natural disasters, and coal mine production is a high-risk operation. For this reason, coal mining companies must adhere to the concept of safe development and put the life of coal miners at the forefront of all work.

“M&A and restructuring have changed the past problems of coal mines that are scattered, small, and chaotic. The relevant government departments will strengthen the management and supervision of coal mine safety production and further improve the system and mechanism for coal mine safety supervision and management. This is responsible to employees and responsible to enterprises. The best expression of responsibility for the country," said Li Chaolin.

Further improving the level of technical equipment, the "Opinions" proposes that in the future mergers and reorganizations, we must give full play to the role of the market mechanism, integrate resources in accordance with the law, reduce unnecessary administrative intervention, and support eligible state-owned and private coal mining companies to become the main merger and reorganization. In this regard, Li Chaolin pointed out that “there are some voices that the promotion of mergers and reorganizations will make coal mine enterprises more and more companies in China, but in fact, as long as private enterprises can reach a certain scale, it is also the main body of mergers and reorganizations. Li Chaolin said.

The China Coal Industry Association experts further pointed out that the market-oriented integration and restructuring of coal companies will help strengthen the core competitiveness of state-owned large-scale coal enterprises, improve the overall quality of the coal industry, help strengthen the macro-control of the coal industry, and enhance The state’s control over coal establishes the basic position of coal in primary energy and guarantees the long-term stability of coal supply.

It is understood that the "opinions" proposes that during the process of mergers and acquisitions of coal mining companies, all kinds of ownership coal mining enterprises, as well as enterprises in the power, metallurgy, and chemical industries, will be encouraged to participate with property rights as the link and shareholding as the main form.

Li Chaolin believes that the integration of coal, electricity, and transportation will be the development direction of coal mining companies in the future, and it will help coal mining companies continue to improve the industrial chain and give greater use of resources and benefits.

In this regard, experts from the China Coal Industry Association also pointed out that currently from the operational effects of the joint reorganization of coal companies and metallurgical, chemical, power, and transportation companies in Inner Mongolia, Henan, Shaanxi, and Yunnan provinces, the advantages are obvious, which is beneficial to The coal supply pattern is more scientific and rational, and the coordination of production and demand is more coordinated.

For the "opinions" proposed to further improve the level of coal mine technology and equipment, Li Chaolin pointed out that vigorously promoting mergers and reorganization will be conducive to the production and use of coal mining machinery. Although the level of mechanization of coal mining enterprises in China is relatively low in the south, overall, the large-scale fully mechanized mining equipment of coal mining enterprises will certainly be used more widely. The improvement of the level of coal mine technical equipment will promote the continuous improvement of the modernization level of coal mining enterprises in China, and continue to strengthen safety production.

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