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The official number of coal mine accidents in the country, announced by the State Administration of Work Safety (SAWS) in Beijing on Saturday, showed a drop of 20% for the second year in a row.
Xinhua reported 11,155 small coal mines 45% of the country's total had been shut down since the second half of 2005.
According to SAWS, while small coal mines make up one third of total coal mines in the country, they account for two thirds of fatalities.
Xinhua reported the Chinese Government had poured $US1.23 billion in treasury bonds over the past three years to upgrade safety technology and equipment at the major state-owned coal mines.
It said the government planned to continue that trend this year, with $US410 million tagged for safety improvements this year and local government adding more financial power to the effort.