Daily Management Review

Chinese authorities fine the country's second largest coal producer


Chinese authorities have fined the country's second largest coal producer for exceeding mining limits and ignoring safety inspections after coal mines in many parts of the country have been forced to operate at full capacity since October to deal with the energy crisis, the Caixin business daily reported on Tuesday.

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It noted that China's State Coal Mine Safety Administration has fined and temporarily suspended coal mining by state-owned Jinneng Holding Group as company management had previously ordered an indiscriminate increase in production and instructed mines to cancel all annual and monthly safety checks, as well as to simplify daily inspections.

The regulator, however, stressed that the company's actions violated the rules set by the board, which prohibit coal mines from uncontrolled increases in productivity and production at the expense of safety. Thus, in October alone, 45 mines of the Jinneng Holding Group exceeded the level of allowed monthly production.

The mines concerned have been ordered by the authorities to suspend production until they rectify the situation and pay fines, and their managers have received administrative penalties. According to the regulator, the Anping mine in Shanxi province with a permitted annual output of 900,000 tonnes of coal was found to have the most violations, but it had produced 2.91 million tonnes of coal in the first three quarters of the year. At this mine, 19 people died in a collapse in 2016.

source: caixinglobal.com