September 06, 2008

China plans to shut 5,000 small coal mines by 2010

Bloomberg reported that China, the world's biggest producer and consumer of coal, will shut more than 5,000 small pits accounting for about 8% of the nation's production capacity, to improve safety.

Mr Li Yizhong the head of China's work safety bureau said that the mines capable of producing a total of more than 200 million tonnes will be shut by 2010. The nation's current coal production capacity is between 2.5 and 2.6 million tonnes. He said “We will severely punish those small mine owners who neglect work safety amid the country's soaring coal demand.''

Mr Li said China plans to cut the combined production capacity at small mines to 700 million tons by 2010 from 900 million tons currently. The target is to reduce the number of small mines to 10,000 within three years, from 16,000. The nation has closed 11,155 small mines since 2005 to improve efficiency and safety.

China's death toll from coal mine accidents fell 21% to 3,770 in 2007 from a year earlier after the nation closed small pits.