Insight
Mine safety inspection ineffective to tackle coal oversupply in China
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Report summary
China's State Administration of Work Safety recently disqualified 113 coal mines from the first-tier safety grade for 2014's Coal Mines Safety Quality Standardization Evaluation, due to exceeding approved output capacity levels and safety issues. The disqualified mines will either face a safety downgrade or an operation suspension, depending on their risk, adding further pressures on illegal mining and coal production above approved capacity levels. The safety standard evaluation appears to be more focused on state-owned-enterprises. We assess the impact of the safety standard evaluation and the possible supply response it will trigger.
Table of contents
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Executive summary
- Coal Mines Safety Quality Standardization Evaluation
- Overcapacity production by SOE is the primary issue
- Safety evaluation is ineffective to tackle oversupply in the near term
- Appendix
Tables and charts
This report includes the following images and tables:
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2014 Disqualified coal mines by region2014 Disqualified coal mines by company type2014 Disqualified mines by reason (million tonnes)List of disqualified coal mines for 2014
What's included
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