In an effort to curb the drastic effect being felt in the rapidly developing Inner Mongolia autonomous region, the region’s chamber of commerce launched an energy branch charged with providing energy assisting coal companies struggling with the slowdown.

The branch will reportedly include a policy platform to sustain companies’ development, a coal port at Caofeidian in the neighboring province of Hebei and an integrated coal trading system.

According to China Daily, up to 80% of the member companies in the chamber’s energy branch are doing business related to coal and their reorganization during the challenging period has eroded private investors’ confidence.

Liu Feng is the head of coal trading company Baotou Zhengxing Material.

“As far as I know, many coal mines in Inner Mongolia have stopped production because of the weak market,” he told the Chinese newspaper.

“Private coal companies are suffering, but the state-owned ones are strong enough to cope.”

The industry support measures come as coal stockpiles in Qinhuangdao, the world’s largest coal port, hit 8.5 million tons and traders are reporting utterly stagnant business as coal prices continue an 11-week decline.

However, while small and medium sized players feel the pinch, China’s state-owned heavyweights have mostly been uncompelled to reduce output.

Shenhua Group, the country’s largest coal producer, has even planned to invest 25 billion yuan ($US4B) on a thermal power plant in the southwest city of Chongqing.