Most of the coal bosses began to make their fortunes in 2002, when the price of coal increased rapidly because of huge domestic energy demand.

Oil prices have also risen steeply  in recent years, meaning many firms have switched to coal, pushing up demand further.

Since then, many private coal mines, as well as some State-owned mines, have increased their production capacities.

Some collieries have increased production by 10 times the permitted capacity, experts said.

Statistics indicate China's total coal output increased from 1.4 billion tons in 2003 to 2.1 billion tons in 2005.

At the same time, coal bosses have come under the spotlight for their alleged apathy towards frequent coal mine accidents and indifference to safety.

Colliery accidents killed more than 2,900 miners throughout the nation in the first eight months of this year, statistics from the State Administration of Work Safety show.

Many people complain it is far cheaper to compensate a dead miner's family than invest in safety equipment.

In 2004 Shanxi Province said compensation should be no less than 200,000 yuan (US$25,000) for each miner killed.

Collusion between corrupt officials and coal bosses is also blamed for the huge number of deaths, and the loss of State assets.

"Even if a boss earns 100 yuan (US$12.5) per ton, he has to use 40 yuan (US$5) to pay off local officials, who have the right to decide the fate of his colliery," Liu Hongsheng, a colliery owner in a small town in northwestern Shanxi, told reporters.

Xue Yulong, another coal boss, said his coal mine had to pay about 400,000 yuan (US$50,000) to purchase a power distribution unit from a local power supply bureau, although the market price of the machinery was only 10 per cent of that figure.

1

2

3

4

(For more biz stories, please visit Industry Updates)