Coal mines in Panzhihua city, South Western China Sichuan province were ordered to stop production following a gas explosion occurred August 30.

One local source said "All the mines in Panzhihua, except those owned by Panzhihua Coal Industry have been ordered to suspend production and conduct safety rectification. He added that further information about the duration of the suspension and the affected production capacity is still unclear.

The Sichuan Daily reported that as of 8:30 August 30, at least 28 miners are still trapped in underground after a gas blast occurred in Xiaojiawan mine in in the city of Panzhihua. 105 miners were lifted to the ground and 19 confirmed dead. 152 miners were working underground when the explosion occurred around 18:00 August 29. The coal mine is owned by Zhengjin Industry and Trade Co Ltd. in Panzhihua some 750 kilometers southwest of the provincial capital Chengdu.

Production capacity is presently unavailable, but official document showed the mine had a designed annual capacity of 90,000 tonnes in 2010 after consolidating another mine. Panzhihua, one of the main coal production areas in Sichuan, produces approximately 10 million tonnes of raw coal each year, or less than 15% of the province’s total output, against demand of more than 20 million tonnes.

Most of the output is coking coal used in the production of steel. Given that Panzhihua Coal contributes nearly half of the city output, local supply would be impacted if the shutdown lasts longer and the city would have to increase imports from other areas. The provincial government in a recent coal industry meeting vowed to further proceed consolidation of coal mines and improve safety record. It set a target to shut 9 coal mines and upgrade 93 mines. Meanwhile, it planned to produce 45 million tonnes coal in the June to December period.

Source - en.sxcoal

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