China Orders Thousands Of Unsafe Mines To Close......

Chinese authorities are under pressure to close unlicensed mines that kill thousands of miners a year.

Chinese mines, many unlicensed, often ignore safety regulations to meet an insatiable demand for coal, which the country relies on for 70 percent of its huge energy consumption.

The first batch of 1,324 unsafe mines ordered to stop production and improve conditions or face permanent closure was announced by the State Administration of Coal Mine Safety on Tuesday, the China Daily said.

"The number is not all the mines on the suspension list. The total will reach 7,000 soon," an administration spokesperson surnamed An was quoted as saying.

China has about 24,000 coal mines and thousands in the massive, fragmented industry produce less than 45,000 tonnes a year.

Closing mines causes 2 major problems; first, China needs every little bit of energy it can produce since demand is growing very rapidly. Second, miners still need to work and closing mines puts people out of work.

Despite pressure and ineffective central government intervention, chances are that unsafe mines that get closed will reopen if the proper guanxi is paid to local officials.