China: Shanxi calls for intensified safety oversight in its coking coal hub

• Changzhi gets warning about spike in coal mining accidents
• Govt expected to crack down on rampant overproduction

Mysteel Global: Authorities in China’s coal heartland of Shanxi province in the country’s north have issued a stern warning to local officials in Changzhi, a key city for coking coal and anthracite production, amid a surge in mine accidents and growing concerns over lax enforcement of safety protocols.

Provincial authorities, including local departments of emergency management, the energy bureau, and mine safety administration, summoned Changzhi city officials on 18 July, criticising them for their “inadequate supervision” amid a spike in coal mining incidents, according to China Emergency Management News, a national industry publication. So far this year, one-fifth of the province’s total mining fatalities and accidents have occurred in Changzhi, it noted.

“The number of accidents and associated deaths has shown clear signs of rebound,” the report noted, blaming the city’s “weak regulatory oversight and poor execution of safety laws.”

In one particular case cited by officials, after a fatal accident had occurred on 29 April, the mine operator chose to privately settle with the victim’s family instead of informing government authorities as required by law — a side-step that highlighted the weaknesses in local-level enforcement and administrative accountability, the Shanxi officials fumed.

Changzhi plays a key role in Shanxi’s coal business for the various types of coking coal and anthracite it produces. Under the city’s five-year mineral resource plan, its mining capacity is set to reach 180 million tonnes (mnt)/year by 2025, with stable output targeted around 170 mnt annually.

The official interview comes amid growing national scrutiny of coal-producing regions. Beijing has recently warned it may crack down on overproduction in key supply hubs such as Shanxi, Inner Mongolia, and Shaanxi, as surging output has led to sustained oversupply and price weakness in China’s thermal and metallurgical coal markets during the first half of this year, as reported.

Industry observers believe the central government’s focus on production discipline and safety compliance reflects a broader shift toward rebalancing the supply-demand relationship in the coal industry, a move that could bolster prices, especially at a time when demand for both coking coal and thermal coal is reaching seasonal peaks.

Coking coal prices in Changzhi have tracked higher recently, driven by resilient demand from coke and steel makers.

Mysteel research showed that some previously shuttered mines in the city have resumed operations, slowly restoring supply volumes, though concerns linger that a new wave of safety inspections could disrupt output again.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.