Tashan coal mine, the third largest of its kind in China in terms of annual production, resumed normal operation on September 21 after an accident, operator Jinneng Holding Shanxi Coal Industry said in a statement.
After one worker was killed in a cave-in accident on September 15, the coal mine was shut next day for rectification. Normally, suspensions take half to one month before coal mines gaining approval after reviews from local or central safety watchdogs.
Tashan is Jinneng's largest coal mine, with an annual production capacity of 25 million tonnes, accounting for 71.23% of the company's total. The coal mine brought in 15.91 billion yuan of revenue, or 87.08%, for the company last year.
The suspension is expected to reduce output by 327,000 tonnes in total, leading to a loss of 26.61 million yuan, preliminary data from Jinneng showed.
Safety is highlighted as the 20th national congress of the Communist Party of China is coming. Yet, the government encourages coal mines to ramp up production as a way to cool off the market, which has been rising since mid-August. This could be the reason why Tashan's suspension is shorter than normal, insiders said.
At present, 5,500 Kcal/kg NAR thermal coal is mainly traded around 1,500 yuan/t at northern transfer ports, FOB with VAT, far above the government-set cap of 1,155 yuan/t.
On September 23, a coal mine accident happened at a coal mine under China Shenhua Energy, leading to one death. It was heard that the coal mine expanded its annual capacity to 4.5 million tonnes and was listed one of the safest mines in 2018.
(Writing by Alex Guo Editing by Harry Huo)
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