China's Shanxi province launched a scheme last week to link coal and power companies, encouraging them to work together, a source from state-owned Shanxi International Coal Energy Group said Tuesday.
Under the scheme, the operation to get coal and electricity generating companies to work together will be completed in Shanxi province by the end of 2015, the source said.
By the end of 2012, local power generators and coal miners will be encouraged to join hands at the equity level and ink long-term cooperation deals to better regulate demand and supply.
Over 2013-2014, coal miners and power producers in Shanxi province will be encouraged to jointly launch integrated coal and power projects, which will qualify for preferential policies as will related infrastructure projects, including railroads and power grids.
By the end of 2015, Shanxi envisages a provincial coal reserve system involving coal miners, power generation companies and related logistics firms.
Shanxi was the second-largest coal mining province in China with a crude coal output of 872.28 million mt in 2011, up 16.6% year on year