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Coal firms’ profits rise on cut in capacity

CHINA’S coal producers posted higher profits in the first half of this year as the country made progress in reducing capacity in the bloated industry.

Large coal companies earned 147.5 billion yuan (US$22.1 billion) in total profits in the first half, up 140.3 billion yuan from the same period of last year, according to the National Development and Reform Commission, China’s top economic planner.

The turnaround came after China cut about 111 million tons of coal output capacity in the first six months, or 74 percent of the annual target.

Last year, China cut 290 million tons of overcapacity in the coal industry.

With more than 400 million tonnes of coal capacity shed since last year, China has accomplished half of its goal of reducing 800 million tonnes of coal capacity in the 2016-2020 period, the NDRC said.

The effort to trim overcapacity is part of China’s bid to overhaul the economy as its growth slowed. The coal industry has become more orderly, the NDRC said.

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