Coal mining deaths in China leading to more imports

A Chinese government policy that purports to make coal mines safer is triggering local supply disruptions.

China’s dismal, and tragic, accident record at coal mines led the Chinese government to consolidate thousands of small, often-dangerous coal mines to boost safety.

As the largest user and producer of coal, the country became a net importer in 2009 for the first time, as the consolidations led to a drop in domestic coal output. (Read an indepth article on China’s place in the global coal market in MINING.com Magazine)

In October 2010 the Chinese government shut down 1,611 illegal coal mines in an effort to improve an industry whose working conditions have been described as harsh, dangerous, and often fatal.

The latest accident on Oct. 29 killed 29 miners in Central China state media reported. 

In 2010 more than 2,600 people died in mining-related accidents, including explosions, floodings and cave-ins.

Bloomberg reported that more accidents this year may prompt local governments to shut down pits and delays startups of new or upgraded mines:

“Some production may suffer because of increased safety concerns, especially in the south where a lot of these accidents happened,” said David Fang, a director at the China Coal Transport and Distribution Association. “That may drive up imports by coastal regions.”

A circular published earlier this month stated the Chinese government is aiming to reduce mining deaths per million metric tons of coal produced by 28%, reports Bloomberg.