News Room - Steel Industry

Posted on 11 Sep 2009

More safety crackdowns in China

THE gas explosion in a coal mine in central China’s Henan Province has prompted immediate mine closures in the Pingdingshan district, a thermal coal producing region.

 

With at least 36 people missing and 43 dead, the Henan provincial government has shut down all 157 mine shafts in the district, according to various media reports.

 

Analysts were quick to reveal statistics on coal production from the area.

 

In a commodities report, ANZ said the coal mines in the district had a combined production capacity of 60 million tonnes per annum.

 

Macquarie said the provincial government had cracked down on small mines in the province with production of less than 300,000tpa that were operating without proper licensing.

 

“Henan produced 111 million tonnes of raw coal for the year to July 2009, 7 per cent of China’s total reported production,” Macquarie said.

 

A Chinese analyst told Reuters that the Pingdingshan district produced mostly thermal coal, and supplied Henan and neighbouring provinces, but he did not expect the closures to have a big impact on the coal market.

 

Tougher safety regulations, along with cheaper international coal prices and lower freight rates, have had China importing unprecedented amounts of coal this year.

 

“Small mines accounted for about 31 per cent of China’s total coal output in the first six months of this year,” ANZ said.

 

Also on Tuesday, a cave-in followed by an electrical fire at an underground gold mine killed 13 workers, with Xinhua reporting a total of 13 officials and mine managers had been either arrested, sacked or suspended from their posts as a result of the two accidents in Henan Province.