Futures & Commodities

China's cabinet issues document on tackling overcapacity in coal sector

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China will not approve any new coal production capacity over the next three years, said China's cabinet on Friday, as part of a plan to tackle severe overcapacity in the sector.

Piles of coal at Suntong Mine of Huaibei Coal Mining Group in Huaibei, Anhui Province of China.
ChinaFotoPress | Getty Images

It will also remove around 500 million tonnes of production capacity within the next three to five years, it said, and speed up the process of squeezing "zombie" coal firms from the market.