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ARTICLE · 05 AUGUST 2013

Coal Production Licenses and Coal Trading Licenses No Longer Required

A State Council Decision has repealed the administrative measures regarding coal production licenses.

ChinaEnergy and Natural Resources

A State Council Decision 1, made public on July 26, 2013, repealed the administrative measures regarding coal production licenses. The decision came following changes to China's Coal Industry Law 2 which abolished the need for the license. As a result of the changes to the Coal Industry Law, companies (both domestic and foreign-invested enterprises) will no longer need to obtain a coal production license to produce coal or a coal trading license to sell coal.

Abolishment of the Coal Production License and Coal Trading License

On June 29, 2013, the Standing Committee of the National People's Congress amended the Coal Industry Law by abolishing the need for: (i) a mining company to obtain a coal production license (煤炭生产许可证) to produce coal, and (ii) a company to obtain a coal trading license (煤炭经营许可证) to sell coal. 3 In order to finalize these amendments to the law, the State Council Decision was issued to repeal the Coal Production Measures 4 on July 18, 2013. The

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