People's governments of various provinces, autonomous regions, and municipalities directly under the Central Government, as well as various ministries and commissions of the State Council and directly affiliated institutions:

Since 2012, affected by factors such as declining market demand, lagging transformation and upgrading of the coal industry, and heavy tax burden and historical burden, the coal industry has experienced structural overcapacity, falling prices, corporate losses and other problems, which have made it more difficult to operate. In order to promote the smooth operation and sustainable and healthy development of the coal industry, with the consent of the State Council, the following opinions are hereby proposed:

1、 Resolutely curb the disorderly growth of coal production

Fully implement the overall requirements of the Party Central Committee and the State Council to resolve the serious contradiction of overcapacity, improve regulations and policies, and scientifically regulate the total amount of coal. Strictly enforce the admission standards for new coal mines, and stop approving new coal mines with a capacity of less than 300000 tons per year and coal and gas outburst mines with a capacity of less than 900000 tons per year. New coal mines must strictly comply with the basic construction procedures, and strictly investigate and punish violations such as unauthorized construction and approval of small and large projects. We should start with improving safety production management, gradually phasing out coal mines with a capacity of 90000 tons/year or less, focusing on closing coal mines that do not meet safety production conditions, and accelerating the closure of coal mines with serious disaster hazards such as coal and gas outburst. Coal enterprises must strictly organize production in accordance with the approved coal mine construction scale and production capacity, and illegal construction and production exceeding capacity are strictly prohibited. Establish a coal mine production capacity registration and announcement system, improve the punishment standards for exceeding production capacity, increase the punishment intensity, and regularly publish the punishment results. Effectively integrate resources, encourage coal enterprises to merge and restructure, take large enterprises as the main body, orderly build large modern coal mines in large coal bases, and promote coal intensive production. (The Energy Administration, Coal Mine Safety Supervision Bureau, and Development and Reform Commission are responsible according to their respective responsibilities)

2、 Effectively reducing the tax burden on coal enterprises

By the end of 2013, the Ministry of Finance and the Development and Reform Commission will conduct a centralized cleaning and rectification of the charging situation in the coal industry of key coal producing provinces, resolutely crack down on various types of arbitrary charging, fundraising, and allocation, and effectively reduce the burden on coal enterprises. While clearing and rectifying the coal related fee collection fund, we will accelerate the reform of coal resource tax ad valorem collection. Please urge the Ministry of Finance and the Development and Reform Commission to promptly organize and implement relevant work, and report to the State Council. (The Ministry of Finance, the Development and Reform Commission, the State Administration of Taxation, the Ministry of Land and Resources, the Energy Administration, and the Ministry of Industry and Information Technology shall be responsible according to their respective responsibilities)

3、 Strengthen the management of coal import and export links

According to the requirements of energy conservation, emission reduction, and environmental protection, research and formulate national standards for the quality of commercial coal. Strengthen the quality inspection of imported coal commodities and include lignite in the statutory inspection catalog. Research and improve differentiated coal import tariff policies, encourage high-quality coal imports, and prohibit the production, use, and import of low-quality coal with high ash and sulfur content. Further monitor and analyze the total amount, structure, and trends of coal imports and exports, and adjust policies and measures related to coal exports in a timely manner based on changes in domestic and foreign markets. (The Development and Reform Commission, the Ministry of Environmental Protection, the Ministry of Commerce, the Ministry of Finance, the State Administration of Taxation, the General Administration of Customs, the State Administration of Quality Supervision, Inspection, and Quarantine, and the Energy Administration are responsible for their respective responsibilities according to their respective responsibilities)

4、 Improve the production and operation level of coal enterprises

Guide coal enterprises to strengthen market supply and demand analysis, optimize production layout, scientifically determine mining relationships, organize production in an orderly manner in accordance with the law, and strictly prohibit unauthorized mining and mining beyond the boundary; Strengthen the supplementary geological exploration and resource reserves of coal mines, identify the peripheral resource reserves of old mining areas, and extend the service life of mining areas. Strengthen internal refined management of enterprises, compress non productive expenses, reasonably control production and operating costs, improve internal control management and safety production level, and increase enterprise benefits. To maintain harmonious and stable mining areas and safe operation of coal mines, further increase investment in safety production, and ensure the personal safety and legitimate rights and interests of frontline workers. Fully leverage the important role of industry associations in self-discipline management, statistical monitoring, information dissemination, promotion of advanced technology and management experience, research and development of standards, and guide the healthy development of the industry. (The Energy Administration, Coal Mine Safety Supervision Bureau, Development and Reform Commission, Ministry of Land and Resources, and State owned Assets Supervision and Administration Commission are responsible according to their respective responsibilities)

5、 Creating a Good Development Environment for Coal Enterprises

Efforts will be made to address the historical legacy issues of old mining areas and old enterprises. The operating expenses of schools, public security and other institutions that have been separated and transferred to the local government for the social functions undertaken by the former state-owned key coal mines shall be included in the local financial budget in accordance with relevant policies and regulations; Local governments should take effective measures to accelerate the transfer of functions that have not yet been separated. Implement relevant policies to address issues such as medical security, socialized management, and social function transfer for retired personnel left behind by the bankruptcy of state-owned key enterprises in coal mines. Establish and improve the exit mechanism, and timely close and bankrupt the coal mines that are insolvency and have no hope of making up losses according to law. Support coal enterprises in developing circular economy in mining areas and accelerate the construction of a batch of integrated coal and electricity projects. Research and introduce effective measures to promote coal enterprises to sign medium and long-term coal contracts with users. Strengthen the supporting connection between the coal industry and manufacturing industry planning and production operation, and promote the coordinated and balanced development of coal supply and demand sides. Local governments at all levels and their relevant departments should adjust and improve the enterprise assessment mechanism in a timely manner based on changes in the coal market. Establish the idea of the coal market being a national game, and prohibit the introduction of local protective measures that restrict the normal circulation of coal. (Ministry of Finance, Ministry of Human Resources and Social Security, State owned Assets Supervision and Administration Commission, Development and Reform Commission, Energy Bureau, Railway Bureau, China Railway Corporation, and provincial-level people's governments are responsible for their respective responsibilities)

The task of promoting the smooth operation of the coal industry is urgent and the responsibility is significant. Each region and department should follow the requirements of this opinion, combine with reality, and solidly carry out all work. The relevant departments of the State Council and the people's governments of various coal producing provinces (districts, cities) should, in accordance with their functional positioning, clarify their division of labor, implement their responsibilities, closely cooperate, strengthen overall leadership, supervision and inspection, and ensure that all policy measures are implemented and effective.

General Office of the State Council

November 18, 2013