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    China Business
     May 19, 2009
Page 2 of 2
Tunlan mine blast exposes safety challenge
By Jianjun Tu

The heavy death tolls at Tunlan are also a direct result of the low productivity of China's coal industry. Considered to be one of China's best collieries, Tunlan is actually not exceptional in this regard and as many as 436 miners were crowding its tunnels when the blast occurred.

To counter individual accidents that were causing heavy fatalities, the Shanxi government in 2005 put limits on the number of miners allowed to work at an underground colliery in accordance with its design capacity. For a 0.09 million tonne mine, the maximum number of allowable miners is 29. For a 0.9 million tonne mine, the limit is set at 99, instead of 290, because of the expected economy of scale [7]. Given Tunlan's design capacity of 5 million tonnes, 436 underground miners at one shift do not even meet the

 

expected minimum productivity standard implied by Shanxi government's 2005 regulation.

To make matters worse, both Tunlan's investment on safety equipment and emergency training for its miners are insufficient. When the blast occurred, Tunlan's methane alarm system did not set off a signal. While the accident at Tunlan was a localized methane explosion, the number of miners that were directly killed was not so high. Yet if the evacuation had been implemented under an ideal scenario (for example, well-trained miners with adequate protection), the final death toll would have been far less than the actual level.

Unfortunately, many first-round survivors still had no clue what had happened even after they were ordered to evacuate; some did not at first wear their self-rescue equipment. For those who remembered such a procedure, several of them were reported to have fainted when they rushed through the mine shaft. As a result of such a messy evacuation, all 340 miners evacuated from the mine showed symptoms of carbon monoxide poisoning. Of 114 miners hospitalized, 11 died and 26 were found to be in critical conditions.

To further complicate the matter, the lack of qualified employees is endemic to China's coal industry. Low incomes, highly undesirable work conditions and negative exposure in the Chinese media make it extremely difficult for Chinese collieries to attract and retain qualified employees, which creates a shortage of the expertise required to raise mine safety standards.

According to the Safety Training Center of the SCCG, more than 80% of Tunlan's trained safety inspectors, arguably the most important position for safety operations, only received middle school education, and none of them has a college or higher level degree [8]. As Tunlan is actually one of the best state-owned collieries in China, the picture of staff qualification is far bleaker for other coal mining enterprises, especially China's numerous TVE mines.

Is there a way out?
Given the large size of operating collieries in China, Beijing's efforts to reduce the number of operating mines is legitimate. Yet, instead of blindly closing coal mines whenever a major accident happens in the adjacent region or just for the sake of avoiding political sensitivity, the authorities should take each mine's unique conditions into consideration even if a safety rectification campaign is necessary.

At present, Beijing plans to reduce the number of "small mines" (a politically correct terminology for TVE mines) to 10,000 by 2010. At the same time, shutting down a coal mine based solely on its capacity is not only unfair for small collieries that strive to meet safety standards but also encourages more to operate illegally across the country, which will have a detrimental impact on the accounting methods used in calculating Chinese coal statistics.

TVE mines are widely regarded as the black sheep of China's coal industry, and private colliery owners are often portrayed by the media as rude, self-aggrandizing and tax-evading upstarts. Yet, since 1978, TVE mines have provided more than 35% of China's cumulative coal output to fuel China's burgeoning economy [9], and have become an indispensable part of China's energy sector.

They were always Beijing's last resort whenever a coal supply shortage occurred due to the flexibility of their operations. As a result of the extremely complex geological structure of China's coal resources, a large portion of Chinese coal deposits are only suitable for small-scale underground mining operations. Without a reasonable presence of private enterprises, the level of competition required for long-term healthy development of China's coal mining industry cannot be ensured.

Further, TVE mines are important taxpayers in many coal-producing regions, they employ large number of migrant workers, and are important to China's social stability. Not only the governmental favoritism towards state-owned mines needs to be reconsidered, the indispensable role of TVE mines to the Chinese economy should also be formally recognized.

The most formidable measurement imposed by Beijing regarding safety management so far may be the "The Safety Framework Governing Resignation of Responsible Officials". Meng Xuelong, the former governor of Shanxi, was the first provincial cadre in China to resign under such a safety framework after a major mining-related accident in September 2008. Following Meng's resignation, Beijing appointed Wang Jun, the former director of the State Administration of Work Safety, as the acting governor of Shanxi. While Wang Jun's political ascendancy in Shanxi has shown Beijing's determination to reign in China's chaotic coal industry, the Tunlan blast nevertheless demonstrates that the "top-down" punitive measurements used toward government officials alone are insufficient to solve China's mounting safety challenges.

As the Chinese economy becomes increasingly market-oriented, Beijing should adopt an alternative approach that can be described as "enforceable sticks with sufficient carrots". While punitive measurements for safety violation are an indispensable component to solve China's safety challenges, enforceability should be a prerequisite for introducing such enactment.

For instance, introducing overly ambitious targets (for example, TVE mine closures) is a very counterproductive practice that should be avoided. More importantly, a legal and taxation environment featuring transparency and stability should be nurtured to create a fair playground for all coal enterprises, especially TVE mines. Only if such types of carrots are made available can sufficient resources in the private coal mining industry be directed towards safety investment and long-term growth instead of attention being spent on beating around the rules and colluding with local officials.

Notes
1. According to the Mine Safety and Health Administration, US Department of Labor, coal mining fatality rates in the US were 1.191 and 1.041 in 1952 and 1953, respectively.
2. Production share is based on 2008 data from the China Coal Transportation and Marketing Association, fatality share is based on 2007 data from the SAWS.
3. He, Y. (1998). "Wen Cangmang Dadi (Report of China's Most Deadly Coal Mining Accident)," China Coal Post.
4. Zhao, S. (2004). Nandan Mining Accident: Case Study of the Struggling News Coverage, in Investigating China: Stories behind the Headlines. Chinese Fangzheng Publishing House: Beijing.
5. China Coal Industry Yearbook, various years.
6. Source: China Coal Transport and Distribution Association (CCTD).
7. Inter-ministry Office on Coal Mine Methane Accident Prevention (2006). "Shanxi Limits Number of Coal Miners Working Underground." Coal Mine Methane Prevention. Issue 32.
8. Website of the Safety Training Centre of the SCCG, at www.xsmdap.com/ns.php
9. China Coal Industry Yearbook, various years / CCTD.

JianJun (Kevin) Tu (jjtu@mkja.ca) is a Vancouver-based senior energy and environmental consultant, and a research associate of the Canadian Industrial Energy End-Use Data and Analysis Centre.

(This article first appeared in The Jamestown Foundation. Used with permission.)

(Copyright 2009 The Jamestown Foundation.)

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