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Coal mines to merge in new restructuring plan

By Lan Tian (China Daily)
Updated: 2009-08-12 09:58

A large-scale restructuring of the coal industry in China's major coal-producing province of Shanxi, starting at the end of this month, will reduce accidents and improve efficiency by shutting down small coal mines, officials said.

"The restructuring this time is the largest after years of adjusting the coal industry's structure," Miao Huanli, planning section director of Shanxi provincial coal bureau, said Tuesday.

The merging and reorganization plans submitted by all the 11 cities and districts of the province have been approved, he said.

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Officials plan to reduce the number of Shanxi's coal mines from 2,598 to 1,000 by 2010, shutting down unsafe and low-producing small mines. The goal is to ensure more safety for miners, according to documents outlining the restructuring program.

The remaining coal mines must have an annual capacity of at least 3 million tons.

"After 70 percent of small mines are taken over by large State-owned mines, the level of industrial concentration will be improved, which will greatly reduce coal mine accidents," said Li Lun, press and education director of the provincial work safety bureau.

Bringing more order to the mining market, as well as the full adoption of mechanical mining, will also improve mining safety, he said.

"The program gives us an opportunity to expand coal reserves and seek further development," said Liu Yaqin, press officer of Taiyuan-based Shanxi Coking Coal Group, a local coal giant with 80-million ton annual coal production capacity.

The group has planned to take over about 200 small coal mines this year, she said.

Meanwhile, Wang Hongying, an energy researcher with Shanxi Academy of Social Sciences, warned that to achieve the goals of the program, local authorities have to coordinate conflicts of interests among stakeholders.

"Authorities have to mobilize the enthusiasm of stakeholders in order to achieve the program's goals, as conflicts of interest are the biggest difficulty in the program's implementation," he said.

Wang Zheng, a small coal mine owner from Nanjiao district of Datong, echoed the expert.

"My mine has stopped production for more than a year and will not resume production by this year due to the restructuring program," he said.

Wang's mine and Shanxi Coal Transportation and Sales Group have reached a framework agreement on relevant merging issues, but the future of about 100 coal miners who worked in Wang's mine is still uncertain, he said.

Some of the coal miners may get jobs elsewhere, and some may lose their jobs, he said.