China`s steel, coal capacity cuts shouldn`t be left to year`s end: NDRC
Source: www.chinamining.org Citation: Platts Date: August 23, 2016
Targets for capacity cuts in the steel and coal industries should be worked towards evenly over the rest of the year, and shouldn`t be left to the eleventh hour, an official at China`s top economic planner said Friday.
Monthly updates will be compiled to monitor progress.
"Either arising from a misunderstanding or reasons related to self interest, some companies had thought it was fine as long as they met the year`s targets by the end of the year," Lian Weiliang, deputy head at the National Development and Reform Commission said at a press briefing.
"And so many companies have timed the cuts for the fourth quarter, or simply in December."
The briefing by the NDRC, jointly held with officials from the State Council and the ministries of industry and commerce, follows a meeting chaired by Premier Li Keqiang last Tuesday, announcing that nationwide audits will be made to ensure targets set for this year are adhered to and achieved.
"We have now provided guidance that the capacity cuts cannot all be concentrated at the end of the year, because the work is very complicated and there is a lot to be done, especially in terms of the reassignment of workers and in dealing with debt," Lian said. "And closing capacity involves dismantling equipment, shutting mines, all of which need time, so we`re requesting that companies do their best to move things forward."
The audits will be conducted first through self-appraisal by local authorities, who have been asked to identify issues, sum up their experiences and suggest areas for improvement.
Then, officials from the central government will conduct on-the-ground checks. Inspectors, split into 10 teams, will begin audits from this week to September 10, and will focus on eight areas including the implementation of capacity cuts, the use of funds intended to cope with the fallout and the reallocation of displaced workers.
As of the end of July, 21.3 million mt/year of crude steel capacity cuts have been achieved, or 47% of the 45 million mt/year set as this year`s target.
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