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Mine safety inspection ineffective to tackle coal oversupply in China

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30 October 2015

Mine safety inspection ineffective to tackle coal oversupply in China

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

    • 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 4 images and tables including:

  • 2014 Disqualified coal mines by region
  • 2014 Disqualified coal mines by company type
  • 2014 Disqualified mines by reason (million tonnes)
  • List of disqualified coal mines for 2014

What's included

This report contains:

  • Document

    Mine safety inspection ineffective to tackle coal oversupply in China

    PDF 320.84 KB