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Hunan to Allow Inefficient Coal Mines to Go Bankrupt
Central China's Hunan Province will soon declare seven loss-making coal mines bankrupt.

This means that more than 20,000 mine workers will lose their jobs or transfer to other sectors, according to local sources.

The sources said that bankruptcy would be declared only after all legal procedures have been completed.

The seven coal mines, which are administered by two different coal mining administrations, have incurred serious losses as a result of the drying-up of resources and have no hope of a turn for the better, said the sources.

A liquidation group, consisting of representatives of 11 departments directly administered by the provincial government, the concerned city governments of Loudi and Chenzhou, as well as from the two coal mining administrations, have so far finished basic work such as confirmation of workers' length of service, evaluation of assets, and liquidation of debts, since the group started operating the seven coal mines late last year.

Members of the group are now busy reorganizing the assets. Examination of the assets reorganization will be finished later this month.

The entire legal process will be completed by April, the local sources said.

(Xinhua 02/21/2001)

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