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Chinese premier Wen Jiabao stresses the country's coal and mine companies need to continue M & A activity, to ensure the healthy development of the sector.
Coal is China's main energy resource. But low centralization, resource wastage, environmental pollution and frequent workplace accidents are challenging the country's coal mining industry. The government is urging coal companies to initiate mergers and acquisitions under the joint-stock system, pushing towards a more modern mining industry.
The government will also introduce preferential finance and tax measures, to upgrade safety technology for merged companies.