State Administration of Work Safety has announced to close down 1000 small coal mines this year to further eliminate obsolete capacity. It also urged large-scale coal mines to regroup and reconstruct small rivals by acquirement, merger, controlling share holding and so on.

SAWS will release economic compensation policy for those to be washed out, encourage and uphold local governments to set up exit mechanism for legal small coal mines and explore and establish supervision and punishment system for accidents.

For the time being nearly two thirds of China's coking coal supply is contributed by small coal mines, whose safety has always been criticized. The pre dawn gas explosion at the Tunlan Coal Mine in Shanxi province on Sunday has killed at least 74 workers.

(Source: Securities Times)