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Call for safety help

WANTED: International research efforts and collaboration in China, including new technology and i...

Staff Reporter
Call for safety help

The conference was held in conjunction with China National Coal Association and attracted about 600 delegates to the Chinese city of Shanghai in late October (see related story).

The conference was opened by the president of China National Coal Association. He said in 2003 China produced 1.667 billion ton of coal, projected to rise to 2.3 billion ton by 2020. During the first six months of 2004, output totalled 1.038 billion ton, up 15.4% on the first half of 2003.

China is going through a major phase of industrialisation and urbanisation which is underpinned by the low cost of energy with the annual growth rate between 9.1% to 9.5%. Power shortages however continue.

Professor Fan said for China to meet the growing demand for coal it was important problems such as low productivity, out-dated mining technology, insufficient investment in new mines and the country’s safety record were addressed.

As much as 95% of China’s production is from underground mines.

China’s coal industry is a three-tier structure. Large coal enterprises with over annual capacity of 50 million tonnes and underground mines of up to 10Mtpa capacity dominate the top-end of the tier.

Typically the Chinese Central government retains majority equity position and some of these enterprises are listed on New York Stock Exchange, Hong Kong Stock Exchange and Shanghai Stock Exchange.

Examples include Yankuang Group, Yanzhou Coal Mining with six operating mines producing 45Mtpa (Jining No 3 mine produces 10mtpa) and the soon to be listed Shenhua Group.

Large coal enterprises include Datong Coal Mine Group, Shanxi Coal Mining Group (46mtpa), Shenhua Group (100Mtpa), Yankuang Co Ltd holding company of Yanzhou Coal Mining Limited (45Mtpa), Kailuan (Group) Limited, Pingdingshan Coal Group and Xuzhou Coal Mining Group.

One strategy is to restructure and consolidate modern mines into these large commercial enterprises.

A second group of mines are the regional mines owned by provincial governments, which are moderately resourced and generally capital restrained.

The third group is the most problematic and is made up of small local and village mines. These mines are not mechanized, have few resources and poor management systems. Up to 70% of all Chinese mine fatalities occur at these mines. The Central government is trying to shut down many unsafe village mines.

China leads the world in fatality rates with fatalities per annum ranging from 4,500 to 7,000 in the 14 years from 1990 to 2003. Over this period the mean death rate per million ton of coal mined was 5.2. For key state owned mines this was 1.2, for locally administered mines 4.5 and for village mines 10.1.

Much has been done to improve safety with the death rate per Mt reducing from 6.2 in 1999 to 3.71 in 2003. For the 2004 first half the death rate was 2.96 for coal mines.

Professor Fan pointed out, however, that little has been done in the prevention and control of occupational disease with an estimated 175,000 workers in key state owned mines suffering from pneumoconiosis. Each year 2,500 to 3,000 former miners die from pneumoconiosis. Methane explosions are the greatest cause of accidents and fatalities with water inrush from multi seam workings also an issue.

In closing, Professor Fan said China National Coal Association, placed a high level of importance on being involved in the international coal industry to learn about safety and access technology.

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