Bloomberg News

China Coal Resumes Output at Two Mines Halted After Deaths

October 02, 2011

(Updates with reason for suspension in third paragraph.)

Oct. 2 (Bloomberg) -- China Coal Energy Co. has resumed production at two of five mines that were suspended after flooding killed 10 workers at a site run by its parent.

The mines passed a safety inspection by local authorities in Shanxi province, the company said in a statement to the Hong Kong Stock Exchange today. Three other sites are starting checks, it said.

Production at the five underground mines was suspended after flooding at a pit run by China National Coal Group Corp., the nation’s second-largest coal producer and parent of the listed company, killed 10 people, Xinhua News Agency reported on Sept. 17.

The provincial government ordered a halt, pending “rectification,” to underground mines owned by the parent and five underground mines in Shanxi held by the listed unit after the Sept. 16 accident, China Coal said in a Sept. 19 statement.

China Coal shares have dropped 29 percent since the accident, compared with a 10 percent slide in the Hang Seng Index. The suspensions, ordered as power plants prepared to start replenishing coal stockpiles for winter demand for electricity, won’t have a material impact on output or the company’s operations, according to today’s statement.

There had been 512 coal-mine accidents in China as of June, 21 percent fewer than in the same period in 2010, Xinhua reported on June 29. Shanxi produced 740 million tons of coal last year, trailing only the 782 million tons mined by Inner Mongolia, China’s top producing province, according to Xinhua in January.

--Editors: Paul Gordon, Shaji Mathew

To contact the reporter on this story: Bei Hu in Hong Kong at

To contact the editor responsible for this story: Paul Gordon at

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