China will raise the threshold on new coal mines and halt approval on those that do not meet specified requirements, in the latest effort to regulate the oversupplied sector.

New coal mines with annual output below 300,000 tonnes and coal-gas outburst collieries with output below 900,000 tonnes will no longer gain approval, says a circular from the General Office of the State Council.

Due to falling demand, severe overcapacity and restructuring toward cleaner fuel, the coal industry has been stuck in protracted bickering since last year.

Thursday's circular also promised to ease tax burdens on coal producers, strengthen quality checks on imports and improve the exit mechanism to allow swift closure of exhausted mines.