China Closing Coal Mines after Deadly Incidents
SCMP reported that a growing number of local authorities across China are temporarily closing coal mines to avoid more deadly incidents ahead of the Communist Party’s 100th anniversary, but the move is expected to add more pressure to commodity prices in the world’s second largest economy.
China’s biggest coal-producing province Shanxi, which accounted for about 14 per cent of total global coal output last year, announced on Thursday the immediate closure of two local mines for at least a month following two fatal accidents, according to the provincial emergency management department. The northern Chinese province has now closed 130 coal mines with a combined output of about 185.6 million tonnes, or nearly one-quarter of total provincial capacity
Other regions across the country have adopted similar measures, including Hubei, which has halted mining from June 15 to July 5, and the central province of Henan, which temporarily shut multiple mines with a total capacity of 19.25 million tonnes from mid-June.
The current wave of coal mining suspensions comes soon after Beijing urged coal companies to boost production to help ease soaring commodity prices, which are squeezing some small manufacturers.