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The flooding accident at the mine in Shanyin County occurred on Saturday and one miner remains missing, according to local media.
Early investigations into the accident at the mine, which produces around 900,000 tonnes per annum, have exposed “serious problems” over safety measures according to Shanxi vice governor Li Xiaopeng’s comments to Xinhua.
Better known as China Coal, the company is the second-largest Chinese coal producer. It can reportedly resume operations in the province after completing a safety overhaul.
On the coal market impacts, a Hong Kong-based analyst at UOB-Kay told Bloomberg that around 60 million tonnes per annum of China Coal’s capacity would be halted for probably two weeks.
The analyst reportedly viewed this as bullish for coal prices in China and the country’s leading producer China Shenhua Energy.
Spikes in China’s domestic prices will also make imported coal more competitive.
State-owned China Coal produced 154Mt in 2010, according to local media.
