Coal hub plans pricing, ownership reforms

Coal industry digs for solutions

Big change needed to tackle smog

The coal hub in North China's Shanxi province is planning new reforms this year, following the central government's pledge to let the market play a decisive role in allocating resources, senior officials said.

"The most important thing is to deepen reform in coal sectors, including advancing price marketization, stepping up reforms of State-owned enterprises and transforming government functions to streamline investment approvals," said provincial Party Chief Yuan Chunqing.

Shanxi is a leading energy base in China, responsible for one-quarter of the country's coal reserves and annual output. But the coal industry in the province last year was under pressure as price drops in the fossil fuel took more than 200 billion yuan ($33 billion) away from the businesses' revenue, Yuan said.

In late 2010, the central government allowed the province to set up a trial zone for exploring economic restructuring in the resource-intensive region.

The trial focused on industrial diversification, ecological restoration, the balancing of urban and rural development and improving people's well-being, Yuan noted.

"Shanxi's coal inventory stood at 267.4 billion tons at the end of 2012, of which 122.8 billion tons have been allocated, mainly through government assignment, with profits of about 1.3 yuan ($0.21) per ton," Yuan said.

Top 10 cities with worst smog in China

Smoggy memories