According to the State Administration of Work Safety, 14 people managed to escape the mine after the explosion.

The administration said a rescue was underway and the cause of the accident was being investigated.

Xinhua reported the mine was being upgraded but the government had not given permission for production to restart.

ANZ analysts said yesterday's accident could trigger another wave of mine closures by the Chinese Government, putting upwards pressure on prices.

"The domestic coal industry was in the process of bringing back online a lot of closed capacity shut for safety inspections in the first half of the year – that return will now likely be slowed as officials respond to the latest development," ANZ said.