In the course of pushing forward the overall growth capacities of the mining industry and getting adapted to the tense competition after China抯 entry into WTO, it is quite necessary to speed up the process of fostering large state-owned coal group enter-prises. This strategical proposal is made on the basis of a comprehensive analysis of the main problems challenges faced by the coal mining industry is made on. The main prob-lems with Chinese coal mining industries discussed include: over-competition with a low convergence, severe waste and loss of mine resources with poor exploitation techniques, disordered operation with few industrial entry barriers, heavy welfare burdens from low socialization. The accession of WTO provide Chinese coal mining industry with chances to push forward the reforms and structural shift in the enterprises, expedite the estab-lishment and perfect of coal mining market mechanism, expand their international market share as well as introduce foreign investment, and with challenges from high technology, knowledge economy, and information revolution. The solutions to the foster of large-scale coal mining group enterprises, as well as the possible points to note and the policy pro-posal are advanced.
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