It is reported that a considerable number of China coal mines, especially small ones are doomed in the world financial crisis.

Over the economic recession, the era of small mines has been certain to come to an end for among the 2,600 coal mines in Shanxi province, only 1,000 will have survived by the end of 2010. During this period, a great amount of so called coal bosses will have been squeezed out of the mining industry. It is estimated that in the hands of them there is roughly a total of CNY 300 billion funds. It's both worthwhile and interesting to see how this large sum of money goes.

Sources indicate that some coal bosses become interested in high efficient agriculture, garden agriculture and bio agriculture etc. There are also some who have been to the Science and Technology Department of the province for information and consultation, in the hope of the finding ideal high tech projects. And also, some have entered the finance scenario.

Although some bosses have had small gains, the road ahead for the bosses will probably be a bumpy one. Tianyuan Yanggang Agricultural and sideline Product Company Ltd which was once crowned a star enterprise in the transformation move has now only a bleak look left. It has met with great difficulties in the expansion into Hotel and Entertainment and Tourism areas.

Analysts point out that coal bosses are low-educated, which is one major difficulty they have in the transformation. A person working in a small and medium sized Enterprise Registration Bureau of Xiaoyi city, Shanxi province said "They slashed huge profits in small coal mine business which is of extensive management and the technology content remains low".

He further introduced that high-tech agriculture and service sectors demand fine and exquisite management, and require professional talents. As they lack all these, they are bound to take risk.

Experts point out that the restriction and bottleneck in investment of private enterprise owners also contribute to the difficulty in their transformation.

(Sourced from MySteel.net)
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