China’s National Mine Safety Administration held a videoconference to alert the country’s miners to prevent accidents. At the conference, the administration ordered mine managers to make great efforts to minimize serious accidents and provide a safe working environment to celebrate the 100th anniversary of the founding of the Chinese Communist Party in five weeks on July 1.
As noted at the conference in the administration, this year the frequency of serious accidents has noticeably increased. Most regions in China have entered the flood season, and as prices for coal and other mineral products remain high, security risks have increased significantly.
Before the meeting, the authorities of some mining regions have already started special checks on flood prevention measures ahead of the rainy season. From April 29 to late September, the Department of Emergency Situations in Shaanxi Province in northwest China – the country’s third-largest coal-mining province – ordered the provincial city officials to raid the mines randomly to address flood and storm response issues. his recent notice.
The Department confirmed that control of production in excess of design capacity was the main task during the audits, as highlighted since the beginning of this year.
Some miners in the Anhui region of eastern China have also begun safety checks or maintenance from late May to reduce safety risks, a market watcher in Shanghai said, citing a celebration in July.
Lack of supply increases coal prices on the domestic market
The impact of the safety campaign has partly affected coal mining in China this year. For example, in March alone, crude coal production in China fell by 0.2% to 340.8 million tons. In April, the decline increased to 1.8% year-on-year, with China’s crude coal production reaching 322.2 million tonnes, according to the country’s official data.
The national price of composite coking coal also jumped 356.6 yuan /ton to 1376.2 yuan /ton, including 13% VAT, a new high since April 5, 2018.
Noting the insanity of the coal market and the need to ensure stable energy supplies in China, both central and regional governments have called for measures to stabilize coal prices, as reported.
On Monday, 12 authorities in Yulin, Shaanxi Province, again called local coal miners to stress the need to stabilize coal prices, saying some coal miners raised coal prices by 5-40 yuan per tonne between May 28 and 30.
By warning coal miners to avoid “unsustainable” increases in coal prices, the authorities re-reminded businesses of the need for safe production, the report said.
“Stringent safety checks have become almost the norm in the country’s coal-producing regions, and they are deterring some coal miners looking to ramp up production,” said a Shanghai-based analyst.