The Chinese government plans to form eight to 10 large coal mining firms capable of each producing more than 50 million tons of coal annually to ensure supplies meet China's rising demand.
Four or five of the planned firms will be expected to turn out 100 million tons each on a yearly basis and control some 60% of the domestic coal market.
A lack of large coal firms was blamed for the country's problems in relieving serious shortages in 2003.
China's coal output for 2003 was estimated at a record 1.6 billion tons, up 14% over 2002's 1.4 billion tons but coal is in still in short supply because of rapidly rising demand, shipment costs and prices.