china suspends coal mines, boosting prices

China, the world’s biggest producer and user of coal, is suspending operations at smaller mines in a bid to improve safety before the nation’s once-in-a-decade leadership transition this month.
The State Administration of Work Safety has sent inspectors to mines to “spot hazards” and accelerate shutdowns over the next month.

Datuhe (Shanxi) Coking & Chemical Co. and Yongning Coal Co a unit of Yongning Coal & Coking Group, have both had operations halted.
The suspensions could affect mines in provinces such as Inner Mongolia, Shanxi and Shaanxi, which combined account for 60 percent of the nation’s output. China has been working to improve safety in an industry in which accidents killed 1,973 people last year and 2,433 in 2010. That compares with 48 deaths in 2010 in the U.S the world’s second-biggest coal producer.

The Datuhe sales manager said one of the company’s three coal mines in Shanxi’s Luliang city was ordered by local government to suspend operations in early September because of the congress. Its other two mines are yet to start operating as they’re being upgraded, he said.
The official at Yongning Coal Co. said its sole mine in Shanxi’s Lishi city has been suspended for the congress. Both Datuhe and Yongning are privately owned.

China’s weekly price for thermal coal used in power generation was quoted at 635 yuan to 645 yuan a ton as of Oct. 29, up from a range of 625 yuan to 635 yuan a ton on Sept. 9, according to the China Coal Transport and Distribution Association, which advises the government.