China Daily said the mine collapsed on Tuesday when 34 miners were working underground. Over 70 rescue workers have been dispatched to the accident site.
The manager of the illegal mine has been taken into local police custody.
Earlier that day another coal mine accident in Shanxi's Shuozhou killed six people and trapped eight. Rescue operations are still continuing.
The Shanxi provincial safety supervision administration said it still has to decide whether to order all coal mines in Shuozhou and Luliang to cease production.