The coal-rich province of Guizhou will close 510 coal mines in the next three to five years in a bid to cut excess capacity, the provincial government said.
The southwestern province will eliminate loss-making "zombie enterprises" that survive only on government support or bank loans , according to an official plan on advancing supply side structural reforms.
The move will help decrease Guizhou's coal production capacity by 70 million tonnes.
Guizhou is the largest coal producer in southern China, with the country's fifth-largest proven reserves.
Through closures, mergers and acquisitions, Guizhou has reduced its number of coal mines in operation and under construction to fewer than 800 from about 1,700 since 2013. It aims to close more than 80 others this year.
The province's move is part of a national campaign to cut overcapacity amid dwindling demand and falling prices in the coal industry.
China plans to shut down more than 1,000 outdated coal mines with combined coal production capacity of 60 million tonnes this year, the National Energy Administration said in February.
