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    Greater China
     Mar 3, 2005
China's man-eater mines
By Yan Hua

HONG KONG - China is the world's largest coal producer with an annual output of more than 1.6 billion tons, but it is also known for the most dangerous coal mining industry on earth. Official statistics show that every year, at least 6,000 colliers are killed in coal pit accidents, and that's just the official figures. Although such accidents seemed to be receding over the recent years following emergency measures by the government, profiteering mine owners still continue to make a mockery of safety regulations, risking innocent lives in pursuit of the black gold.

A fierce gas explosion recently hit the Sunjiawan coal mine funded by the state-owned Fuxin Mining Group in Northeast China's Liaoning province, leaving over 200 workers dead and another 30 severely injured. This was the deadliest coal mine accident ever in history. A multi-department investigation panel has been instituted to find the cause of the explosion, and compensation ordered. But experts fear that disasters like this will not cease anytime soon because the exorbitant profit margin in coal mining is the real culprit and as long as this is not fixed, the perverse incentive to mine dangerously will persist.

As China's economic engine breaks new speed limits, consumption of natural resources - coal and natural gas in particular - continues to grow rapidly. Coveting the expanding coal market, shrewd investors from Zhejiang province's Wenzhou city have taken the lead in the "coal rush". The coal price hike seen in the past few months may have induced the Sunjiawan coal mine owners to order overtime work through the Chinese Lunar New Year vacation, and overwork may have led to neglect of safety norms, leading to the accident.

Last year, when flocks of Wenzhou touts speculated in the buoyant coal market, unsafe and unauthorized coal pits in the coal-strewn Shanxi province of central China set in motion a string of similar accidents. According to coal business insider, if one puts 100 million yuan (US$12.05 million) in a mine in Shanxi, he will earn it back in only two years. Beijing Morning Post cited a Shanxi mine owner as saying, "Mine owners from Zhejiang have piled up a fortune." Wenzhou's legion of mine owners is now suspected to be manipulating coal price. According to the Shanghai Evening Post, statistics indicate that they have purchased some 60% of small and medium-sized mines in Shanxi, valued at over 4 billion yuan. Added together, these mines can churn out no less than 80 million tons of coal every year, accounting for about a fifth of provincial annual output or 5% of the national yearly production.

It is the great profitability in coal mining that gives rise to the serial accidents that China's collieries have come to be known for. Not only are safety norms overlooked to over-produce coal to book heavy profits, but also many mine owners employ less expensive novice colliers and omit necessary staff training to lower the cost. Local officials are often lured into the game with bribes so that they look the other way as rules are flagrantly violated. There are instances when mines marked dangerous have reopened under the officials' noses. Safety orders are also not obeyed by avaricious officials who know that they will be rewarded for high coal production that goes to feed China's roaring economy.

In the case of the Sunjiawan explosion, the profit-hungry mine owner had set two goals for 2004: first, an annual turnover of 1.2-1.3 million tons; second, a total income over 160 million yuan. With such an ambitious goal, were the right safety norms followed? That's exactly what the investigation panel looking into the accident is trying to find out.

According to a survey released recently by the State Administration of Production Safety, China produced 1.728 billion tons of coal in 2003. But only 2,090 mines - with a total annual output of 1.1 billion tons - have been registered as following safety standards as of the end of 2003. Thus, even by official reckoning, the coal production of the balance of 628 million tons was secured at the cost, or at least the risk, of human lives.

Incidentally, at a jiaozi (dumplings) dinner with the workers of a coal mine in the Fuxin city of Liaoning province on Chinese New Year's Eve in 2003, Premier Wen Jiabao declared: "Safety has the top priority in mining, mark my words." Despite the government's numerous assertions of coal mining safety standards since, precious little has been done on the ground. The result: one Sunjiawan follows another.

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The human price of coal  (Jan 15, '04)

China's deadly mining industry  (Jul 26, '03)

 
 

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