Chinese government has accelerated introducing a policy mechanism on coal industry to realize the industry's sustainable development.

   Informed sources say that the National Development and Reform Commission (NDRC) has submitted coal industry policies for review and approval of the State Council, the country's cabinet.

   The government aims to plan and guide the long-term development of coal industry through the first-ever policy mechanism tailor-made for the industry.

   It is also a flesh-out version to a policy on the industry by the State Council in June 2005. The to-come policy mechanism will set forth detailed requirements to raise thresholds of coal development and standardize industry order.

   The policies will not give special chapters to widely watched coal- related segments as coal-bed methane and coal chemicals.

   Earlier media reports quoted NDRC officials as saying that a NDRC plan on coal chemical industry would come forth around this yearend to curb the overheated investments in this area.

   Coal makes up 76 percent of the country's primary energy production and 69 percent of the country's energy consumption. For a quite long time to come, coal will remain a major energy source of the country.

   In 2006, the country's crude coal output reached 2.325 billion tons, 8.1 percent higher than one year earlier. Industry experts estimate that China's crude coal production will hit 2.5 billion tons in 2007, 6.5 percent higher than that of 2006.

   China's coal industry has seen a great variety of problems, such as frequent coalmine accidents and highly scattered production capacities, in recent years as energy tension increases and coal investments heats up.

   By end-May, the country had shut 9,000 small collieries, cutting down the country's coalmine number to some 20,000.