(Yicai Global) Sept. 26 -- The supply-side structural reform of China's mining industry has achieved noteworthy results. In the first seven months, total profit of China's mining industry reached USD42 billion (CNY279.5 billion), soaring 7.5 times over the same period last year, and the market stayed stable overall, said the institute of economic research with China's land resources ministry.
Aside from the mining industry, production capacity cuts in the coal and steel sectors have also achieved remarkable results, said Jia Wenlong, a ministry economic research official, at the China Mining Expo held from Sept. 23 to Sept. 25 in China's eastern city of Tianjin. China slashed 290 million tons of coal capacity, and 65 million tons of iron and steel capacity last year, achieving both tasks ahead of schedule.
Coal production capacity decreased by 110 million tons in the first half, achieving 75 percent of the annual target, while steel production capacity dropped by 42 million tons to attain 85 percent of the annual target.
Mergers and acquisitions and restructuring of these enterprises have also wrought new changes in these industries, and reversed continuing price declines caused by overcapacity, Jia added.
The Institute also released four indices of the mining industry index at the expo showing China's mining sector is stable and with profits notably higher.