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China Stops Work at More Coal Mines in Shanxi Over Safety Issues

September 4, 2023 - Safety inspectors in China’s third-largest coal-mining regions ordered the suspension of operations of two more mines in northwest Shaanxi province, with more than a dozen temporarily closed in recent weeks after a deadly accident late last month.

The suspensions come after a gas explosion in a coal mine in Shaanxi on Aug. 21 killed 11 people and injured 11 others, according to an announcement by the Ministry of Emergency Management.

Annual production from the latest two mines to be closed was put at 600,000 and 450,000 metric tons per year in 2019, official data shows.

The local mine safety administration said in documents posted on a government website that the mines were found to have “major accident hazards” during on-site inspections.
The bureau had already ordered 12 other coal mines in the province to halt operations last month, though five others were permitted to resume output, according to government announcements.

China’s most active coking coal futures contract DJMcv1 rose almost 6% on Friday, driven by concerns of tightening supply from the safety checks, said analysts.

China’s coal mines are among the world’s deadliest, largely due to poor safety standards and problems with over-production.

In February, an open-pit mine in Inner Mongolia collapsed, killing 53 people.