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OPINIONS OF THE STATE COUNCIL ON PROMOTING THE SOUND DEVELOPMENT OF THE COAL INDUSTRY
 
(No.18 [2005] of the State Council promulgated on June 7, 2005)
     
     
SUBJECT : COAL INDUSTRY
ISSUING DEPARTMENT : THE STATE COUNCIL OF THE PEOPLE'S REPUBLIC OF CHINA
ISSUE DATE : 06/07/2005
IMPLEMENT DATE : 06/07/2005
LENGTH : 6,117 words
TEXT :
Coal, which is an important fundamental energy source and raw material of our country, and plays an important strategic role in the national economy, will be the main energy source in the primary energy structure of our country for a long time. From the opening and reform, the coal industry has rapidly developed, its output is on continuous increase, its production technical level is gradually enhanced, the work safety conditions of coal mines are also improved, and the coal industry has played an important role in the national economy and social development. However, there still exist many prominent problems in the development of the coal industry, such as the illogical structure, extensive growth pattern, low scientific and technological level, recurring safety accidents, serious waste of resources, retarded environmental control as well as many other problems left over by history. Along with the development of national economy, the demand on coal is on the rise, therefore the resources, environment and safety pressure will be further increased. In order to promote the continuous, stable and sound development of the coal industry and guarantee the requirements for developing the national economy, the following opinions are hereby put forward:


I. GUIDING THOUGHTS, DEVELOPMENT TARGETS AND BASIC PRINCIPLES

1. Guiding thoughts. It is imperative to take the Deng Xiaoping Theory and the important thoughts of Three Represents as the guidance, fully carry into effect the scientific approach of development, rely on the scientific and technological progress and adhere to the coal industry's development pattern of high utilization rate of resources, safety and safeguarding, good economic benefits and little environmental pollution, and sustainable development. The work safety of coal mines shall always be on top of all works, and the construction of large-scale coal bases and the cultivation of large-scale coal enterprises and enterprise groups shall be the mainstream. Pursuant to the requirements for the overall arrangement of collaborative development of the coal industry and other relevant industries, the overall arrangement of collaborative development of the coal exploitation and the ecological environment, the overall arrangement of collaborative development of the economy of mines and the regional economy, a new type of coal industrial system suitable for the socialist market economic mechanism shall be built, the continuous, stable and sound development of the coal industry shall be realized, and the construction of a conservation-minded society shall be accelerated so as to provide reliable energy resources for building a well-off society in an all-round way.

2. Development targets. From 2005, three to five years shall be used to build a well-regulated coal resource exploitation order, build large-scale coal bases, engender several large-scale coal enterprises and enterprise groups with the production capacity of more than a hundred million tons, largely improve the basic safety conditions of coal mines, effectively control the gas of coal mines, effectively control the recurring tendency of major and utterly serious accidents, evidently make the work safety of coal mines more favorable, basically control the aggravating tendency of the ecological environment of mining areas and gradually perfect the system of coal regulations and policies. Another five years or so shall be used to establish a resources exploitation supervision system with the emphasis on the rational protection and reinforced saving, a coal supply system composed mainly of large-scale coal bases and large-scale coal enterprise groups, a work safety security system with the emphasis of reinforced management and input and with the support of advanced technologies, a recycling economic system focusing on the processing and transformation of coal, the comprehensive utilization of resources and the environmental control of mines, as well as a monitoring system of regulations and policies based on the Law of the People's Republic of China on the Coal Industry and the Law of the People's Republic of China on Mineral Resources.

3. Basic principles. The principle of combining the persistence in developing advanced production capacity and elimination of outdated production capacity shall be followed. On one hand, the construction of modern large-scale coal bases shall be accelerated, large-scale coal enterprises and enterprise groups shall be fostered and the recombination, combination and reorganization of medium and small coal mines shall be promoted; on the other hand, those small coal mines that are not rationally distributed or that do not meet the work safety conditions or that waste resources or destroy the ecological environment shall be closed according to law. The principle of combining temporary solution with permanent cure shall be insisted on so as to exert the strength to solve those prominent problems that affect the sound development of the coal industry, and at the same time, the perfection of the monitoring system of regulations and policies shall be accelerated, and the entry conditions for exploring and developing coal sources shall be enhanced. The guidelines of safety first and precaution crucial and the principle of comprehensive control shall be adhered to so as to make various elements, such as the safety culture, safety legal system, safety responsibilities, safety science and technologies and safety investment of coal mines, be in place. The principle of combining the guidance and support by the State with the independent development by enterprises shall be adhered to. In other words, the State shall not only help enterprises solve problems left over by history and create a fair and competitive market environment for the development of enterprises, but also shall respect the independent development right of the enterprises. The principle of combining the system reform and mechanism innovation shall be stuck to so as to promote the coal enterprises to establish a well-regulated modern enterprise system, establish an incentive and restriction mechanism that can guarantee work safety, promote the sound development and improve the vigor and competitiveness of enterprises. The principle of combining the exploitation of coal, regional economy and social development shall be insisted on, the coal resources shall be properly explored and utilized, the combination of the coal industry with the electrical, metallurgical and chemical industries and other related industries as well as the local transformation of coal shall be promoted to stimulate the local economy and harmonious development of the society.



II. STRENGTHENING PLANNING AND ADMINISTRATION, AND IMPROVING THE EXPLOITATION SUPERVISION SYSTEM OF COAL RESOURCES

4. Strengthening the planning administration of coal resources. The coal resources are important strategic resources, therefore the administrative pattern shall be improved so as to realize the transformation of scientific and rational exploitation and protective and intensive administration from the extensive exploitation administration. The nationally planned mining areas of coal resources and mining areas that are important to the national economy shall be determined in a lawful, scientific and rational manner, and the exploitation shall be orderly conducted in strict accordance with the state plans. The nationally planned mining areas of coal resources and the mining areas that are important to the national economy shall be studied and determined by the Ministry of Land and Resources, and be jointly deliberated and promulgated together with the National Development and Reform Commission. A strategic storage system of coal resources shall be established, and protective exploitation shall be conducted to the special and rare coal categories.

5. Improving the administrative system of management, production and exploitation of coal resources The development and reform (or the coal industry) administrative departments at all levels shall strengthen their supervision and administration of exploitation and construction of coal mines and the coal production by comprehensively using coal development plans, industrial policies, laws and regulations. The land and resources administrative departments at all levels shall, pursuant to the Law of the People's Republic of China on Mineral Resources and the administrative regulations of the State Council, regulate the administrative work relating to the exploration and exploitation registration of coal resources, correct and stop any examination or approval by exceeding the limit of power or any unlawful allocation of coal resources by exceeding the limit of power in the name of attracting investments. The planning on coal exploitation and the administration of resources shall be mutually linked up and closely concerted. When a development and reform (or the coal industry) administrative department formulates plans on the production and exploitation of coal or the overall planning on mining areas, it shall solicit the opinions of the land and resources administrative department at the corresponding level, and take the said opinions as an important basis for the approval of plans. When a land and resources administrative department formulates plans on the exploration of coal resources or the plans on the establishment of mining rights, it shall solicit the opinions of the development and reform (or the coal industry) administrative department at the corresponding level, and take the said opinions as an important basis for the approval of plans on the exploration of coal resources or the plans on establishment of mining rights. The local people's governments at all levels of an area with coal yields shall determine the administrative department for the coal industry, replenish and strengthen the coal administrative strength, establish and improve the administrative system, and reinforce the administration of coal resources, production and exploitation.

6. Reinforcing the exploring strength of coal resources. The monetary support for exploring coal resources shall be reinforced, a circulating fund for coal geological exploration shall be reserved so as to reinforce the ability to safeguard coal resources. The State shall invest for detection, general investigation and necessary explicit inspection of coal resources and uniform administration of the primary exploration right market of coal resources, formulate the general development planning of mining areas and the plans on the establishment of mining rights based thereon; shall conduct the market-oriented transfer of the secondary exploration right and the mining right market of coal resources pursuant to the general development planning of mining areas and the plans on the establishment of mining rights, and the incomes from the said transfer shall be subject to the different administration of revenue from expenditure, and be used to invest in exploring coal resources, so as to realize the development at a progressive speed. The entrance system on the coal geological exploration market shall be improved, and a keen-witted and capable, efficient and well-equipped coal geological exploration team shall be trained. The exploration technical rules shall be rigorously implemented, the storage appraisal system shall be further perfected, and the geological exploration precision shall be enhanced and the geological exploration quality be ensured with the help of scientific and technological progress, so as to found a basis for rational planning and exploitation of coal resources.

7. Exploiting coal resources in a rational and orderly way. A compensation system for obtaining the mining right shall be further improved, the measures for appraising the price for the coal mining right be regulated, a market discovery mechanism for the price of the mining right be gradually formed, and the capitalization administration of the mining right be realized. The capitalization of the coal mining right shall be related with the scientific production planning and be orderly conducted according to the principles of uniform planning, centralized development, one-off purchase and payment by installments. The examination and approval of the mining right shall be rigorously enforced. For the coal resources in mining areas determined by the State, no mining right may be established if the exploitation plans or the plans on the establishment of the mining right have not been approved by the State. The scientific division and rational exploitation of wells in mining areas shall be ensured and an exploitation order of coal which is good for protecting and saving resources shall be formed. The modification of criteria for designing coal mines shall be accelerated to rigorously enforce the administration of the mining order, mining methods and exploitation intensity and to prohibit the mining by exceeding layers or boundaries or privately mining or randomly mining. It is encouraged to adopt advanced technologies to exploit coal layers that are difficult to be tapped and the utterly thin coal layers. Any newly built or rebuilt coal mine shall be subject to the examination and approval of the work safety supervision department at the corresponding level according to its administrative affiliation, and the "three synchronic" (synchronic designing, synchronic construction and synchronically putting into use) of the work safety facilities shall be seriously implemented at the same time.

8. Preserving, saving and rationally utilizing coal resources. The standard on the resource recovery rate of coal production wells and administrative measures thereof shall be modified. Any coal exploration and construction project whose designed recovery rate falls short of national standards may not be examined or approved, and no mining license may be issued for it. A rigorous utilization and supervision system of coal resources shall be established so as to conduct annual inspection and dynamic supervision of the recovery rate of coal resources. Any coal mine failing to meet the standard on recovery rate shall be ordered to be rectified and improved within a time limit. If the standard on the recovery rate still can not be met within the time limit, a penalty shall be imposed even up to canceling its mining license or its license for coal production. The perfection of measures for calculating and collecting taxes and charges on coal resources shall be accelerated, and the scheme of calculating and collecting taxes and charges on coal resources according to output and sales incomes shall be changed into that of calculating and collecting taxes and charges on coal resources according to the storage of resources, and the new scheme shall be implemented if the conditions are ripe. At the same time, various incentive and restriction mechanisms shall be actively explored so as to ensure that the production enterprises of coal save coal resources. The resource storage administrative organ of production enterprises of coal shall be improved, the storage responsibilities shall be fulfilled, the coal storage management archives and system be perfected, and the production technologies and administrative rules be strictly implemented.



III. ACCELERATING THE STRUCTURAL ADJUSTMENT AND STRENGTHENING THE COAL SUPPLY SYSTEM

9. Accelerating the construction of large-scale coal bases: Pursuant to the coal development planning and exploitation layout, the mining areas with good resource conditions and potential of development shall be selected and state-owned large-scale coal enterprises shall be relied on to accelerate the construction of such thirteen large-scale coal bases such as Shendong, Shanbei (Northern Shaanxi) and Jinzhong (Mid Shanxi) and form stable and reliable supply bases of commodity coal, bases of deep-processed coal and bases of export coal. The State will continuously arrange the money from the infrastructure investment fund (or treasury bond) within the budget of the CPC Central Committee to support the construction of large-scale coal bases by contributing capital or by other ways. All policy banks, state-owned commercial banks and joint stock commercial banks shall actively improve their financial services, increase the innovation strength of financial products, practically support the coal exploitation and construction in line with the national industrial policies and market entry conditions and support those qualified coal enterprises to get listed on the stock market for financing, issue enterprise bonds, raise construction funds and speed up the construction and development pursuant to the state provisions.

10. Promoting the coordinated development of the coal industry and other relevant industries. The construction of large-scale coal bases shall be linked up with the transport of coal and water sources, and be in harmonious development with the relevant industries and the regional economy. More investment shall be put to the reform of the investment system of railways ad ports, encourage enterprise legal persons and private capital to purchase stocks so as to participate in the construction and management of railways and ports, take time to build and rebuild coal channels of Shanxi, Shaanxi and the west part of Inner Mongolia and launching ports for northern coal, improve the coal transportation capacity and thoroughly relax the restriction of transportation to the coal supply. Pursuant to the principles of governmental guidance and enterprise's free will, the coal-electricity integration development shall be encouraged and the construction of large-scale pithead power plants shall be accelerated to alleviate the transport pressure of coal. The joint operations between large-scale coal enterprises and metallurgy, chemical industry, building materials and transport enterprises shall be encouraged. In the case of the industrial development and layout of thermal power generation, coal chemical industry and building materials, priority should be laid on those projects relying on coal mines so as to promote the optimization of the layout between energy resources and pertinent industries and the coordinated development of the coal industry and downstream industries.

11. Fostering large-scale coal enterprise groups. The regional, industrial and ownership boundaries shall be broken to speed up the fostering and development of several large-scale coal leading enterprises and enterprise groups with the capacity of a hundred million tons and make them the principal part in the optimization of coal industrial structure, the construction of large-scale coal bases, the balance of the demand and supply of domestic coal market and the overseas exploitation of coal and participation in the international market competition. A coal enterprise shall further perfect its corporate governance structure, enthusiastically push forward the shareholding reform according to the requirements of modern enterprise system, transfer its operational mechanism and improve its management level. The exploitation of resources in state-planned mining areas and those mining areas that have important value to the national economy shall be controlled by state-owned capital. It is encouraged to develop large-scale enterprise groups that conduct integrated operation of coal, electricity, railways and ports and that are of international competitiveness. The large-scale coal enterprises are encouraged to invest in managing overseas mines and bring about the export of coal machinery products and the export of technologies and labor so as to improve the international competitiveness of the coal industry of our country.

12. Further reconstructing, reorganizing and regulating small mines. All coal production areas shall bring the market mechanism into full play, speed up the reorganization, reconstruction and improvement of small mines, integrate coal resources and conduct intensive exploitation and operation. The large-scale coal enterprises are encouraged to merge and reorganize medium and small coal mines, and the medium and small mines with reliable reserves of resources are encouraged to conduct combined reforms through the restructuring of assets. The renovation of mining techniques and the technical reconstruction of medium and small mines shall be energetically promoted, and the coal mines with a certain scale shall adopt the normalized wall-mounted mining. Those small mines that are irrational in layout, inconsistent with the safety standards or requirements of environmental protection, or that waste resources shall continue to be eliminated, and those small mines that are under illegal operations shall be firmly banned.

13. Speeding up to improve the coal production and equipment manufacturing technical level. New and high technologies and advanced applicable technologies shall be adopted to speed up the construction of high-yield and high-efficiency mines, improve the equipment modernization, system autoimmunization and management information level of coal mines, eliminate outdated technical equipment and techniques, and promote the scientific and technological progress of the coal industry. The mechanization of medium and small mines shall be energetically promoted, comprehensive service institutions orientated to small mines shall be fostered and developed, and a perfect technical service system shall be established. The research and the developing and manufacturing capacities of important coal technical equipment shall be enhanced and the domestic production progression of important equipment be promoted by introducing key technologies, integrating technology with trade, cooperating in manufacturing, and swapping market for technology. The combination of enterprises, scientific research institutions, various universities and colleges shall be strengthened to promote the construction of the technical innovation system.

14. Regulating the coal market order. The interest relationship between coal enterprises and power generation enterprises shall be properly adjusted through further reform of the coal circulation system, the reform of the formation mechanism of electric and coal prices and the adoption of economic means and necessary administrative regulations. The reform of coal ordering methods shall be continuously promoted, and suppliers and buyers are encouraged to independently contact each other and encouraged to sign long-term supply contracts. The construction of a modern coal trading system with the national coal trading center playing a principal role, while regional markets playing a supplementary role, with network technologies serving as the platform, and which is good for the macro control of the government and free dealings between market subjects, shall be accelerated. The qualification censorship of coal enterprises shall be rigorously enforced, and the unlawful operations without a license shall be banned. Any random charge or fine at the coal transportation or selling link shall be straightened out, and any other illegal act such as adulteration or tax evasion shall be punished according to law.



IV. ADHERING TO THE COMPREHENSIVE CONTROL AND REINFORCING THE WORK SAFETY SECURITY SYSTEM OF COAL MINES

15. Further fulfilling the work safety responsibilities. The construction of the safety working system of coal mines by which the State conducts supervision, local governments carry out administration and enterprises take the charge shall be strengthened, and a work safety responsibility system shall be further carried out. The safety supervision system of coal mines shall be improved, the authority and effectiveness of the supervision shall be enhanced, and the safety enforcement and inspection of coal mines shall be strengthened. The functions of local people's governments concerning the safety supervision of coal mines shall be fulfilled, and a work safety system of local coal mines under the leadership of local people's governments be established. A work safety licensing system of coal mines shall be seriously carried out to specify the subjects responsible for the work safety of coal enterprises and carry out the system of subjecting the legal representative of an enterprise to be the first person to assume work safety responsibilities. The management organs of an enterprise shall be simplified and the front-line management strength shall be reinforced. The accreditation system of internal work safety organs of coal enterprises shall be persisted in, and the system of leaders' going to wells with the staff and to lead the mining operations shall be rigorously implemented. The qualification management of contract-out engineering teams and the field management shall be strictly enforced. A coal mine work safety deposit system shall be established.

16. Increasing the investment for the safety of coal mines. A mechanism of joint investment for the safety of coal mines made by the Central Government, local governments and the enterprises concerned shall be improved pursuant to the principles that enterprises take the charge and governments give support. All kinds of coal mines shall withdraw its work safety fees pursuant to the relevant provisions. The State will continuously arrange money from the infrastructure investment fund (or treasury bond) within the budget of the CPC Central Committee to support the safety technical innovation of coal mines. For any safety reconstruction project supported by the State on coal mines, the local treasury shall actively arrange supporting funds, which shall be listed as a special item and be contributed simultaneously with the central treasury fund. The finance, audit, coal industrial administrative departments and the safety supervision department of coal mines shall strengthen their supervision to ensure that the special safety fund of coal mines are used for the special purposes and the smooth implementation of safety reconstruction projects and their effects.

17. Enhancing the gas-control technical level. A ministerial cooperative and leading group for gas control of coal mines shall be established to strengthen the leadership and cooperation of the work relating to the gas control of coal mines. A national gas control and utilization (coal seam gas) engineering research center shall be established to strengthen the gas-control scientific and technological problem tackling, promote the scientific and technological progress of the work safety of coal mines, fundamentally change the actual situation of recurring gas accidents and accelerating the research on the gas calamity monitoring and early-warning, emergency rescue, gas explosion-proof of coal and dust and gas dumping, mining and utilization technologies. The formulation and implementation of an overall gas control scheme for coal mines across the country shall be sped up so that the gas control of coal mines can achieve prominent outcomes. The finance and taxation authorities shall work out measures for implementation as soon as possible, and apply preferential taxes to the gas (coal seam gas) dumping, mining and utilization. All coal enterprises shall rigorously conduct the management of high-gas and gas-outburst wells, establish and improve a discrimination technical system of danger sources, a monitoring and controlling system of gas dumping and mining, as well as a calamity early-warning and rescue system, so as to practically avoid any major or especially serious gas accident.

18. Enhancing the quality of miners of coal mines. An employee training system shall be established and improved by enterprises. Enterprises shall be organized and led to carry out multi-level and all-round safety and technical trainings and continuing education to employees so as to comprehensively enhance the quality and work safety techniques of the employees of coal mines, particularly the mining workers. Compulsory safety training shall be conducted to the principals of coal mines and persons engaged in main types of works, and phenomena such as improperly commanding or operating or violating disciplines shall be stopped. A national system of professional qualification certificates shall be implemented, by which persons at professional technical posts in coal mines and persons engaged in special types of works shall be subject to the professional access requirements and take posts after obtaining qualification certificates, and the staffing standard on persons at technical posts shall be rigorously enforced. The education department shall strengthen its cooperation with the coal industry, and incorporate the specialties regarding the coal industry into the cultivation and training plans of badly needed skillful talents, and shall cooperate with coal enterprises in prompt resumption or establishment of a batch of coal professional technical schools. The relevant colleges, universities and secondary professional schools shall be guided in training coal professional talents who are aware of safety, know technologies and have management abilities according to the requirements of the coal industrial market, and shall encourage students to enter for examinations of coal specialties by providing scholarships of coal specialties and reducing tuition.



V. STRENGTHENING THE COMPREHENSIVE UTILIZATION AND ENVIRONMENTAL CONTROL, AND ESTABLISHING A COAL RECYCLING ECONOMIC SYSTEM

19. Boosting the industrialization development of technologies on clean coal. The National Development and Reform Commission shall work out plans, improve policies, organize the construction of model projects, give certain financial support, and boost the industrialization development of technologies on clean coal, energetically develop the coal washing, coal matching and briquette technologies, and enhance the coal washing, selecting and proceeding degree. It should actively develop the resource evaluation on use of coal for liquefaction and gasification, and stably enforce the coal liquefied and gasified projects. It should accelerate the construction of model underground gasified projects with low-grade and hard-to-be-exploited mines and bring about the development of the chemical industry of new types of energy resources with coal as the basis. Advanced coal-fired and environmental protection technologies shall be adopted to enhance the utilization rate of coal and reduce the discharge of pollutants.

20. Promoting the comprehensive utilization of resources. The comprehensive development and utilization of gangues, coal slurries, coal seam gas and water discharged from wells and inter-grown and associated minerals in coal mines shall be conducted pursuant to the principles of high efficiency, cleanness and sufficient utilization. The gas dumping, mining and utilization shall be encouraged to turn the bad into the good, and promote the industrialization development of coal seam gas. The use of low-heating-value coal for power generation and the production of building materials that match with the total volume of resources shall be developed pursuant to the principle of nearby utilization. Supporting regulations, standards and administrative measures shall be modified or formulated, preferential financial policies shall be implemented or improved, and the resource utilization and harmless disposal of wastes shall be encouraged. During the course of declaring coal production and development plans and construction projects, the scheme of comprehensive utilization of resources shall be put forward and be one of requirements for examination and approval of projects.

21. Protecting and controlling the environment of mining areas. An appraisal on environmental effects shall be conducted for the exploitation and utilization of coal resources, and the system of "three synchronics" for construction projects shall be rigorously implemented for the environmental protection facilities and the main projects. The protection of ecological environment and water resources and the control of wastes and coal mining caves shall be strengthened pursuant to the principles that whoever develops will conduct the protection, whoever pollutes will bring it under control, and whoever destroys shall make resumption. A resumption and compensation mechanism of ecological environment of mining areas shall be studied and established, the control liabilities of enterprises and governments be clarified, and the investment in controlling ecological environment be increased, and the environmental control of mining areas shall gradually step into a favorable cycle. Special plans shall be formulated for the debts owed for controlling the environment of historically formed coal mining wells of former key state-owned coal mines, and the comprehensive control shall be continuously carried out, and the central government shall grant necessary fund and policy support, and the local people's governments at all levels and coal enterprises shall arrange supporting funds pursuant to the provisions.

22. Vigorously carrying out saving and effective utilization of coal. The rational use of coal, the economized use of coal and effective use of coal shall be actively guided to vigorously relax the current coal supply tension and solve the long-term contradiction of coal production and demand. The economic structure shall be energetically adjusted and the growth pattern be practically transformed, the industrial policies and energy consumption standards of products be earnestly perfected, and the development of high-energy-consumption industries be restricted. The energy production and the consumption structure should be optimized, and the development of new energy sources be encouraged to reduce and substitute the use of coal as much as possible. Relying on scientific and technological progress and innovation, advanced coal saving equipment, techniques and technologies shall be popularized. Scientific administration shall be reinforced to reduce the loss and waste of coal in the links of production, circulation and consumption. Economic policies, technical standards and regulations that are good for saving coal should be formulated, and economic, legal and necessary administrative means should be used, and all-round and rigorous coal saving measures be implemented, so as to form a favorable environment of economical use of coal and rational use of coal in the society.



VI. FORMULATING AND PERFECTING THE RELEVANT LAWS, REGULATIONS AND RULES, AND IMPROVING THE REGULATORY SYSTEM OF COAL INDUSTRIAL LAWS AND POLICIES

23. Strengthening the coal legal system construction. The Law of the People's Republic of China on the Coal Industry and the Law of the People's Republic of China on Mineral Resources should be modified as soon as possible, supporting laws be perfected, and a system of coal laws adapted to the socialist market economic mechanism should be established and improved. The policies on the coal industry should be promptly modified, the examination and approval system for managing mines should be improved and the access standards should be rigorously enforced. The strict standards for consumption of coal sources and discharge of pollutants shall be formulated to promote the application of new technologies, new techniques and new materials and push the escalation of the coal industry. The construction of the coal law enforcement team shall be reinforced and the coal market order shall be regulated, so as to create a favorable market environment for the development of all kinds of coal enterprises. All coal enterprise shall seriously implement technical policies and industrial standards and criteria of the State on resources, environment and work safety, and internal technical administrative regulations and rules of enterprises shall be established and improved to regulate the acts in the aspects of well designing, construction, technical reconstruction, production, processing and utilization and deeply carry out safety quality standardization activities.

24. Virtually alleviating the burden of coal enterprises. All regions shall speed up the separation of the social responsibilities borne by coal enterprises pursuant to the relevant state policies concerning the separation of social responsibilities borne by coal enterprises. The policies concerning the rationed return of value added taxes and income taxes to key state-owned coal mines by the central treasury shall be practically carried out in strict accordance with the provisions of the State Council on reforming the management system of key state-owned coal mines in 1998. The reform of the value added tax system should be sped up, and the liquidation and rectification measures for various funds and charging items promulgated to be abolished shall be implemented to alleviate the burden of coal enterprises.

25. Promoting the continuous development of coal enterprises. The relevant provisions in the Law of the People's Republic of China on the Coal Industry shall be implemented, the establishment of the system of accumulating the production transfer fund for coal enterprises at declining period shall be studied and established, and the fund to be exclusively used for the development of continuing industries and substituting industries should be raised. The coal cost assessment system should be perfected, and enterprises should be ensured to increase its continuing resources, to make exploration of resources, to protect and regulate the environment, and develop the continuing industries. Attention should be paid to the rational exploitation of coal and the coordinative development of economy and society of mining areas, and the supporting policies concerning the infrastructure construction and financial transfer payment, should be formulated to promote the industrial restructuring and economic development of the mining towns and support the economic transition of the resource-exhausted mining areas.

26. Enhancing the labor security level for miners. Efforts should be made to strengthen he elementary quality standardization work of coal mines, enhance the level of mechanization and automation, improve the operational environment, and alleviate the labor intensity of miners. The working system of coal mines shall be reformed to shorten the time for miners to stay under the wells to no more than eight hours, and a working system of four shifts and six hours should put in effect as soon as possible. We should strengthen research and development of labor protection appliances of coal mines, and coal enterprises should provide necessary labor protection appliances to miners under wells and unceasingly improve the labor protection level. We should intensify the supervision and inspection of vocational hazards at coal mine fields, and do a good job in the prevention and cure of occupational diseases such as the coal workers' pneumoconiosis in an effort to protect the mental and physical health of miners. The Regulation on Work-Related Injury Insurances shall be comprehensively implemented, and the labor and social security administrative departments of all regions shall formulate specific measures for coal enterprises to purchase work-related injury insurances according to the actual situation of the coal enterprises in their respective regions. All kinds of coal enterprises should purchase work-related injury insurances for miners so as to practically maintain their lawful rights and interests.

27. Enhancing the living quality of miners. The labor and social security administrative department should set forth or raise the allowance rate for miners at hard positions in light of the labor intensity and risks of underground miners and the production environment. Various coal enterprises shall gradually increase the incomes of miners in light of their respective profit-earning situations. The reconstruction of dangerous houses and canopies formed through history shall be solved by continuously adopting the joint capital contribution of the State, local governments, enterprises and individuals.

28. Bringing the functions of intermediary institutions into full play. The intermediary market should be fostered and further regulated, and the functions of trade associations and other intermediary institutions in the aspects of industrial statistics, technical service, safety appraisal, market development, information consultation and industrial self-discipline should be fully exerted to provide excellent services to enterprises, to provide policy-making consultation for the macro control of the government, to regulate the market behaviors of enterprises and to maintain the fair competition order of the market.

The sound development of the coal industry concerns the overall situation of the development of national economy and the energy safety. All regions and all departments should strengthen their study and research, seriously conduct the implementation work and lose no time to formulate and carry out all specific measures. The National Development and Reform Commission should strengthen the supervision, inspection, guidance and coordination together with the relevant departments, seriously study and solve the difficulties and problems encountered during the course of developing the coal industry and promote the continuous and sound development of the coal industry.
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