China is accelerating speed of formulation of its first policy on development of coal industry following the issuing of the country's first policy on iron and steel industry development in 2005.

     According to a report of the China Business News, the country's National Development and Reform Commission (NDRC) has submitted the draft policy on coal industry to the State Council.

     The policy, focusing on long and medium-term development of coal industry, will give specific provisions on access threshold to the coal industry and standardize order on exploration and development of coal resources.

     It is reported that the policy has 11 chapters covering industry access, organization, distribution, technology, trade and transportation, environmental protection, safety production and conservancy utilization, and security measures.

     There will be not specific chapters on development of coalbed methane and coal chemical industries.

     Hou Shiguo, deputy head of the Industry Department of NDRC, is quoted by some newspapers as saying that the policy is likely to be published in end of this year or early next year.

     The policy is aimed to curb the overheated investment in coal chemical industry, according to Hou.

     According to China's 11th Five-Year Plan (2006-2010) on development of coal industry, China will have six to eight big coal enterprises with coal production ranging from 100 million tons by 2010, and eight to ten coal enterprises with coal production of 50 million tons, which are expected to account for more than 50 percent of the country's coal output.