BEIJING - China, which dominated the world's mining and metal transaction sectors in 2009, will shift its merger and acquisition (M&A) activity into domestic consolidation, with deals reaching an unprecedented level in 2011, according to a report from Ernst & Young released on Tuesday.

"Government-led domestic consolidation in the coal and steel sectors drove the value of domestic deals up 89 percent to $8 billion in 2010," said Raymond Ng, Ernst & Young's China Energy leader.

"Given China's newly announced 12th Five-Year Plan (2011-2015), we predict domestic M&A in 2011 in these sectors will materialize at an even faster pace," he said.