China’s Shanxi province, responsible for about a quarter of the country’s total coal output, will cut its production capacity by 23 million tonnes this year as part of its efforts to streamline the sector, it said on Friday. Shanxi, which produced 832 million tonnes of coal in 2016, has been part of a national campaign to reduce coal capacity by around 500 million tonnes over the 2016-2020 period in order to bolster prices and improve efficiency in the sector. In a report published on its official website, the northern Chinese province said it would intensify a restructuring program this year and try to shut down or consolidate mines with an annual production capacity of less than 600,000 tonnes. Citing an official with the province’s land and resources office, the report said Shanxi had canceled 56 coal mining licenses in the past five years, resulting in production capacity cuts of 51 million tonnes per year.