China Ministry: To Curb Steel Works Lacking Environmental OK

BEIJING -- China's Ministry of Environmental Protection is studying ways to shut down high-polluting companies and is closely monitoring the steel industry for companies that start construction on steel projects without securing environmental approvals, a senior ministry official said Friday.

The ministry is targeting companies in the steel, power, electrolytic aluminum and coking coal industries for possible closures because of environmental pollution, said Zhu Xingxiang, head of pollution prevention division, Ministry of Environmental Protection, at a joint briefing on industrial overcapacity with the National Development Reform Commission and the Ministry of Land and Resources.

The government may offer compensation for the closures and could begin trying out ways to effect such closures soon, Zhu said.

The ministry has declined or delayed 47 projects worth CNY191 billion so far this year on the basis of environmental standards, including those in the steel, petrochemical, nonferrous metals and power sectors.

"Many steel projects start construction without environmental approval," he said.

The ministry is also closely monitoring some hydropower projects which may impact the environment, Zhu added, without naming the projects.